Answer:
<h2>A reduction in the oil prices in United States would lead to a a larger reduction in the GDP deflator than the CPI.Hence,the correct answer in this case is option D) or a larger reduction in the GDP deflator compared to the CPI.</h2>
Explanation:
In Macroeconomics GDP deflator and Consumer Price Index(CPI) both indicates the fluctuations or variations in the overall price level of all the goods and services in the economy.However,CPI only includes the prices of goods and services that are finally consumed or purchased by the consumers or buyers in the economy and excludes the goods and services involved in any commercial,business to business or government exchange or transaction.On the other hand,GDP deflator estimates the price level of all the goods and services produced by the economy.Therefore,GDP deflator is a relatively comprehensive and broader price indicator in the economy compared to the CPI and is inclusive of all types of commercial transactions between all entities,unlike CPI.Now,in this context,oil is used both for final consumption by consumers or buyers as well as for commercial purposes or intermediate good by firms and companies for production of final goods and services.In many common instances,oil is heavily traded in the international market and is a major export commodity for most of the oil producing countries.Therefore,CPI,in this case,would only register the reduction in price of oil that has been used only for final consumption by the consumers or buyers in the economy.In contrast,GDP deflator will account for the overall reduction in price of oil that is produced by US in general which is used for all commercial,government or administrative and final consumption.Consequently, oil price reduction in US will cause a relatively higher reduction in its GDP deflator than the CPI.
Shopper Marketing involves using in-store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.
Answer:
1.A representative quantity from a probability distribution arrived at by multiplying each outcome times the associated probability and summing up the products.
2.The relative convertibility of short-term assets to cash.
3.Assets that are assumed to be long term in nature.
4. Computer terminals in retail stores that may be used for inventory control or other purposes.
5. Assets that are converted to cash within the normal operating cycle of the firm.
6.Financing provided by sellers or suppliers in the normal course of business.
7.Equal monthly production used to smooth out production schedules and employ manpower and equipment more efficiently.
Explanation:
