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lisabon 2012 [21]
3 years ago
5

Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most bal

anced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing the_______using______by the______using_____and multiplying by 100. However, the CPI reflects only the prices of all goods and services______.
Which does an increase in the price of a Chinese-made car that is popular among U.S. consumers show up in?A) GDP DeflatorB) CPIWhich does a decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine that cuts and stacks trees show up in?A) GDP DeflatorB) CPI
Business
1 answer:
Paladinen [302]3 years ago
4 0

Answer:

1. The GDP deflator for this year is calculated by dividing the <u>value of all goods and services produced in the economy this year</u> using <u>this year's prices </u>by the <u>value of all goods and services produced in the economy this year </u>using <u>the base year's prices</u> and multiplying by 100.

This is why the formula for the GDP deflator is = GDP by year n prices/ GDP by base year prices.

2. However, the CPI reflects only the prices of all goods and services<u> bought by consumers. </u>

<u />

3. Which does an increase in the price of a Chinese-made car that is popular among U.S. consumers show up in? - <em><u>B) CPI</u></em>

The Chinese-made car is not made in the US and is included in the basket of goods consumers buy which is used to calculate calculate CPI.

4. Which does a decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine that cuts and stacks trees show up in? - <em><u>A) GDP Deflator</u></em>

This is not part of the goods in the basket and it is assumed to be made domestically so it is part of the GDP Deflator.

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Accounts receivable, equipment, the building itself, and the land on which the building stands are examples of:
emmainna [20.7K]

Answer: Assets

Explanation:

Assets are something that a business owns that is able to bring in money or is a store of value.

All the above mentioned items are considered assets as they fit this description.

Accounts receivable is a current asset which means it has a duration of a period or less.

Equipment, building and land are all fixed assets as they have a duration of more than one period.

8 0
3 years ago
Why is gdp an imperfect measurement of total production in the​ economy?
ra1l [238]
First of all, GDP does not include household production, production from the underground economy, intermadiate goods or intermediate servces. That is because we define GDP to be the total of all market values of all final goods and services in the country. Hence, the correct answer by the above definition cannot be d. The point of that definition is that household products cannot have a market value and that if we counted towards the GDP both the value of a Graphics Card and that of the PC, we would double count the value of the Graphics Card, thus overestimating the GDP. We see that the value of new houses are included in GDP since they need materials and services and they have a market value, so b is also excluded. Finally, we have shown that b is true but that this is a good thing and leads to a better estimate of total production; the correct answer is a. Here is an example. If there is an economy where in every house there is plenty of wood and people make wood dolls out of tradition, these dolls will not have a market value if they are kept by the people who made them. Nonetheless they are products too and everyone could just try to sell them the next day at a reasonable price; then, the GDP would get a bump out of nowhere, because it cannot account for household items or the underground economy.

8 0
3 years ago
ABC C.o just completed an IPO with an investment bank on a firm-commitment basis. The firm issues 3 million shares of common sto
Brut [27]

Answer: $150,000,000

Explanation:

Question is:

What were the total proceeds from the common stock sale?

Total proceeds refer to the total amount that the sale of the stock generated. This means that you should not account for the underwriting fees as of yet but just the amount that came in.

= Number of shares sold * price per share

= 3,000,000 * 30

= $150,000,000

3 0
3 years ago
Sam works as a tax preparer for a local accounting office. What kind of education
Julli [10]
Bachelor degree in accounting. it makes the most sense
6 0
3 years ago
Read 2 more answers
For accounting errors, which of the below sentences is true?
Monica [59]

Answer:

The correct option is C

Explanation:

Accounting error is the type of error in the accounting which was not done intentionally but when spotted, the error need to be fixed immediately. And when there is no immediate solution for the error, an investigation is conducted in order to find out who caused the error.

The statement which is true is that they represent the fraud which usually result in the legal action to be taken.

7 0
3 years ago
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