# Do the cpi and the gdp deflator always show the same

• Notes
• 12
• 100% (1) 1 out of 1 people found this document helpful

This preview shows page 8 - 10 out of 12 pages.

##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 19 / Exercise 3
Exploring Microeconomics
Sexton
Expert Verified
12. Do the CPI and the GDP-deflator always show the same increase in the rate of inflation?
13. Briefly describe the advantages and disadvantages of using the CPI, the PPI, and the GDP-deflator as economic indicators.
16
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 19 / Exercise 3
Exploring Microeconomics
Sexton
Expert Verified
import goods, used goods, or interest payments, and early estimates are often unreliable and have to be revised repeatedly. However, the GDP-deflator is the most complete of the price indexes. 14. Assume last year's real GDP was \$7,000 billion, this year's nominal GDP is \$8,820 billion, and the GDP-deflator for this year is 120. What was the growth rate of real GDP?
15. Comment on the following statement: “A country that spends more than its total national income must have a trade deficit.”
16. Calculate the values for government outlays (G), saving (S), and investment (I) from the following information. 150 = 110 300