Answer:
To answer properly, it is better to define core inflation:
Core inflation measures the changes in goods and services <u>excluding</u> from the analysis the <u>prices of food and energy sectors</u>, which <u>fluctuate more than the rest of the elements of the index.</u>
Then, when inflation is calculated, the prices of all goods and services included in the CPI are used, while when core inflation is calculated, prices of food and energy sector are excluded.
Core inflation allow us to perceive long term tendencies in prices.
- Concerns policymakers more than the level of core inflation. FALSE: while <u>core inflation allow us to follow tendencies in the price levels,</u> inflation may change suddenly because of an abrupt change in energy prices, for example, which may be seasonal, not representing a sustainable in the long run prices tendency.
- Is generally more volatile than core inflation. TRUE. Inflation measure does include the changes in prices of food and energy, which by nature are more unstable than the rest of the prices in the economy, making inflation measure more volatile than core inflation.
- Does not include the most price-flexible goods in the economy: FALSE (this will be core inflation instead of inflation).
- Is generally less volatile than core inflation. FALSE: see definition of core inflation above and its implications.
Answer:
$12,380
Explanation:
The beginning inventory is $9,150
The budgeted ending inventory is $10,420
The cost of goods sold is $11110
Therefore the budgeted purchases can be calculated as follows
= $10,420 + $11,110-$9,150
= $21,530 - $9,150
= $12,380
Hence the budgeted purchases is $12,380
It is a scientific hypothesis as far as I know.
It is a hypothesis that can be proved and that in this case is correct.
Hope it helped,
Happy homework/ study/ exam!
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