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padilas [110]
3 years ago
9

An increase in the price of imported goods will show up in:

Business
2 answers:
docker41 [41]3 years ago
6 0

Answer: c) The CPI but not in the GDP deflator.

Explanation: A GDP deflator is a measure of the level of prices of all new, domestically produced finally goods. It is calculated by dividing the nominal GDP by the real GDP.

A Consumer Price Index on the otherhand measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households

The major difference between the CPI and GDP deflator is thay they Reflect a different set of prices. The GDP deflator does not include changes in the price of imported goods, while the CPI does not account for changes in the price of exported goods.

Evgesh-ka [11]3 years ago
5 0

Answer:

The correct answer is letter "C": the CPI but not in the GDP deflator.

Explanation:

A deflator measures the changes in the value of money in relationship with fluctuations in prices and production. The main difference between the CPI (Consumer Price Index) deflator and the GDP (Gross Domestic Product) deflator is that <em>the first measures the price of goods and services bought by consumers whether imported or not</em> while <em>the second measures the prices of all goods and services produced domestically</em>.

Thus, <em>if imported products increase in price the CPI deflator will take it into account but not the GDP deflator.</em>

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3 years ago
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Ideally;
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3 years ago
SME Company has a debt-equity ratio of .60. Return on assets is 7.5 percent, and total equity is $486,000. a. What is the equity
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