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Zina [86]
3 years ago
14

The value of the consumer price index (CPI) is best described as the:______

Business
2 answers:
Ivenika [448]3 years ago
8 0

Answer:

Option A.

Current year prices to base year prices, holding the market basket content constant

Explanation:

In simpler terms the Consumer price index a value used in measuring inflation in an economy. It  is a value that measures the weighted average of a basket of consumer goods and services such as food and transportation, healthcare etc. They are used to assess price changes associated with the cost of living in a particular society.

The formula for calculating The Consumer Price index is given as

CPI=  (Cost of Market Basket in Base Year / Cost of Market Basket in Given Year ) ×100

This makes the correct answer option A.

MrMuchimi3 years ago
4 0

Answer:

E) Current year quantity to base year quantity, including changes in the price of the market basket.

Explanation:

Consumer Price Index is an economic strategy which is used to check inflation. Consumer Price Index, also referred to ad C.P.I, is used to weigh the price level of the market basket which individuals purchase. When consumer price index is mentioned, thoughts usually go to price levels of goods and services and the changes it harbours. It is always necessary that a country checks its market for any sign of inflation and that is the use of the consumer price index. This checks for consumer purchase activity as well as the different price levels.

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3 years ago
Use AD/AS model to explain how Canadian economy saw 4% Real GDP with very little inflation. Select one: a. Canada's Aggregate de
Marianna [84]

Answer:

The Correct Answer is "D"

Explanation:

When aggregate demand moves to the right; there is an enhancement in the general cost level just as the genuine GDP. When there is a rightward move of the aggregate supply, genuine GDP increments yet broad value level reductions. It might happen that the size of the two movements is same with the goal that cost level stays unaltered pretty much however genuine GDP increments.

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3 years ago
Explain why it is important to have some goals when developing a budget plan?
alukav5142 [94]

Answer:

U might go broke on tha cash

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3 0
3 years ago
Part E14 is used by M Corporation to make one of its products. A total of 22,000 units of this part are produced and used every
murzikaleks [220]

Answer:

(29,800)

Explanation:

The computation of the financial advantage or disadvantage is shown below:

As we know that

Financial disadvantage = Cost of making - Cost of buying

where,

Cost of making is

= [(Direct material per unit + direct labor per unit + variable manufacturing overhead per unit) × units produced] + additional segment margin

= [($4.7 + $9.30 + $9.80 + $5.20) × 22,000 units] + $34,000

= ($29 × 22,000 units ) + $34,000

= $672,000

And, the Cost of buying is

= Units produced × offered price

= 22,000 units × $31.90

= $701,800

So,

Financial disadvantage is

= Cost of making - Cost of buying

= $672,000 - $701,800

= (29,800)

6 0
3 years ago
Marble Construction estimates that its WACC is 10% if equity comes from retained earnings. However, if the company issues new st
IceJOKER [234]

Answer:

Project Size IRR

A $650,000 14.0%

B 1,050,000 13.5

C 1,000,000 11.2

D 1,200,000 11.0

Explanation:

Based on the information given the set of projects that should be accepted should be the project that has higher Internal rate of return (IRR) than the Weighted average cost of capital (WACC) percentage of 10.8% . Hence, the set of projects that should be accepted are: Project A,B,C,D

Project Size IRR

A $650,000 14.0%

B 1,050,000 13.5

C 1,000,000 11.2

D 1,200,000 11.0

Total $3,900,000

Based on the above we can see that Project A,B,C,D has a total of $3,900,000 which is higher than the retained earnings amount of $2,500,000.

Therefore the set of projects that should be accepted should be Project A,B,C,D

6 0
3 years ago
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