In the US, if the price of imported oil rises so that the prices of gasoline and heating oil rise, then the GDP deflator and the CPI rise by about the same amount.

Solution for If nominal GDP is $10 trillion and real GDP is $8 trillion, the GDP deflator is: a. 80, and this indicates that the price level has decreased by 20…

Based on the table below, calculate nominal GDP, real GDP, the GDP deflator, and the inflation rate in each year and fill in the missing parts of the table. Use 2016 as the base year.

SECTION A: Question 1 a. Answer True or False in the space provided. 1. Inflation typically falls in recession and increases in good times. 2. The GDP deflator is a price index which fixes …

2. Alternative price indexes Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices …

What term is used to describe the maximum quantity that an economy can produce, in the context of its existing inputs, market and legal institutions? a) aggregate supply b) potential GDP c) …

GDP Deflator CPI 0 Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how. prices fluctuate …

5. Real versus nominal GDP Consider a simple economy that produces two goods: cupcakes and erasers. The following table shows the prices and quantities of the goods over a three-year …

OC. nominal GDP was greater than real GDP, and the GDP deflator was greater than 100. OD. nominal GDP was equal to real GDP, and the GDP deflator was equal to 1. 150 180 200 …