Answer: The correct answer is "Deflation was bad for farmers because the value of their debt stayed the same while the price of their products fell.
Explanation: Deflation was bad for farmers because the value of their debt stayed the same while the price of their products fell.
The farmers who asked for loans had to return the same nominal value that they borrowed (whose real value was higher since the price level decreased) and lowering the price of the products they sold obtained less profit margin.
Answer:
An increase in the price of a Japanese-made phone that is popular among U.S. consumers
This price increase would only show in the CPI because the GDP Deflator only accounts for goods produced domestically, while the CPI accounts for the most commonly bought goods and services, whether made domestically, or abroad.
A decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S. but not bought by U.S. consumers Grade it Now Save & Continue Continue without saving.
This price decrease would only be accounted for in the GDP Deflator, because the equipment is made within the U.S., and bought by an U.S. company.
It would not be included in the CPI because 1) it is not bought by consumers 2) it is not a good that is part of the most commonly bought basket of goods and services.
Answer:
I used an excel spreadsheet to calculate this:
the least squares regression line:
y = a + bx
y = $2,937 + 3.96x
where y = total cash wash costs and x = rental returns
fixed costs = $2,937 per month
variable cost = $3.96 per car washed