Answer:
b. the CPI better reflects the goods and services bought by consumers.
Explanation:
The Consumer Price Index (CPI) measures the change in price over a period of time (inflation) of a selected basket of goods and services that represents those goods and services that are most often bought and consumed by the average consumers.
While the GDP Deflator includes the change in price of all goods and services, even those that are not commonly purchased, CPI only includes those that are common, for example: food, gas, housing, and medical insurance. Because of this, the CPI is a better gauge of inflation, and is the index that is usually used to measure inflation.
<span>c. All five of the potential errors could cause this sort of problem.</span>
Answer:
The net income is $1288
Explanation:
Given the return on equity for the firm = 23 %
The total asset turnover for the firm = 2.2
Given profit margin = 6 %
The total equity = $5600
Since we have given all the above values. Now we have to calculate the net income. Here, the net income can be calculated by multiplying the return on equity with total equity.
Return on equity = Net income / Total equity
23% = Net income / $5,600
Net income = $5,600 * 23%
Net income = $1,288
