Answer:
Opland and Lovenia
Beneficial Exchange Rate:
Opland Flexible (Floating) Exchange Rates
Lovenia Pegged (Fixed) Exchange Rates
Explanation:
A flexible or floating exchange rate for Opland allows the market economy to determine the prevailing exchange rate between it and Lovenia, for instance. The market forces of demand and supply interacting in an open and mature financial system ensure that the appropriate exchange is established at each transaction point. In such a system, the credibility of policymakers is not under question, and the market enjoys labor flexibility with low inflation.
On the other hand, Lovenia, suffering from hyperinflation due to lack of investor confidence in its economy, will not be able to operate a floating exchange rate. It needs to rein on inflation by fixing the exchange rates for transactions with other nations in order to stop capital flight.
How does management use coded data for decision support
Discuss how medical staff an departments use coded data and give example a. How does management use coded data for decision support and management decisions?
Answer:
yes
Explanation:
Decision making involves a carefully thought out process about the best course of action, and medical staffs often rely on them in their decision making.
For example, medical staff can evaluate the quality and efficiency of the care they provide by monitoring negative tends that may appear on coded data, Meanwhile management can use their findings from coded data to draft out better health policies for their organization.
Pumped Up Company purchased equipment from Switzerland for 140,000 francs on December 16, 20X7, with payment due on February 14, 20X8. On December 16, 20X7, Pumped Up also acquired a 60-day forward contract to purchase francs at a forward rate of SFr 1 = $0.45. On December 31, 20X7, the forward rate for an exchange on February 14, 20X8, is SFr 1 = $0.475. The spot rates were
Answer:
Kindly check the explanation section because the answer is long.
Explanation:
(1). Date: December 16.
Details: Equipment = 140,000 × .46 = 64,400.
Accounts payable(Sfr) = 140,000 × .46 = 64,400.
Foreign currency received from broker(Sfr) = 140,000 × .45 = 63,000.
Dollar payable to exchange broker($) 140,000 × .45 = 63,000.
(2). Date: December 31.
Details= foreign currency transaction loss = 140,000 × ( .48 - .46) = 2,800
Revaluation of Accounts payable(Sfr) = 140,000 × ( .48 - .46) = 2,800
Foreign currency received from broker (Sfr) = 140,000 × (.475 - .45) = 3,500.
Foreign currency transaction gain= 140,000 × (.475 - .45) = 3,500.
(3). Date : February 14.
Details: Foreign currency transaction loss = 140,000 × (.475 - .47) = 700
Foreign currency receivable from broker = 140,000 × (.475 - .47) = 700
Account payable = 140,000 × (.47 - .48) = - 1,400 = 1,400.
Foreign currency transaction Gain= 140,000 × (.47 - .48) = - 1,400 = 1,400
Dollars payable to exchange broker = 140,000 × .45 = 63,000
Cash = (140,000 × .45) = 63,000
Foreign currency uni(Sfr) = 140,000 × .47 = 65,800.
Foreign currency receivable from broke(Sfr) = 140,000 × .47 = 65,800.
Accounts payable(Sfr) =140,000 × .47 =65,800.
Foreign currency units(Sfr) = 140,000 × .47 = 65,800.
The Edmonton Company is issuing $50,000 face value, 10% bonds with detachable stock warrants. The value of the bonds without the warrants is $40,000 and the value of the warrants is a total of $10,000. The bonds with the warrants sold for $55,000. The journal entry to record the sale will include:
Answer:
Assuming that the warrants are detachable, the journal entry should be:
Dr Cash 55,000
Cr Bonds payable 40,000
Cr Paid-in capital stock warrants 11,000
Cr Premium on bonds payable 4,000
The value of the warrants must be recorded separately under the paid-in capital stock warrants account, and any excess amount will be allocated proportionally between that account and the as a premium on bonds payable account.
The following accounts are from last year’s books at Sharp Manufacturing: Raw Materials Bal 0 (b) 154,000 (a) 164,000 10,000 Work In Process Bal 0 (f) 510,000 (b) 132,000 (c) 168,000 (e) 210,000 0 Finished Goods Bal 0 (g) 460,000 (f) 510,000 50,000 Manufacturing Overhead (b) 22,000 (e) 210,000 (c) 26,000 (d) 156,000 6,000 Cost of Goods Sold (g) 460,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year?
Answer:
$510,000
Explanation:
Calculation for the amount of cost of goods manufactured for the year
Two method can be used in calculating the cost of goods manufactured for the year
METHOD 1
Using this formula
Cost of goods manufactured= Beginning Balance Cost of goods sold + Ending Balance Finishing goods ending balance
Where,
Beginning Balance of Cost of goods sold = $460,000
Ending Balance Finishing goods = $510,000 -$460,000 = 50,000
Let plug in the formula
Cost of goods manufactured=$460,000+$50,000
Cost of goods manufactured=510,000
OR METHOD 2
Calculation for the cost of good manufactured for the year
Beginning work in process $0
Direct material $132,000
Direct labor $168,000
Manufacturing overhead $210,000
Less: Ending work in process $0
Cost of goods manufactured $510,000
Therefore the amount of cost of goods manufactured for the year will be $510,000
Cheyenne Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Aug. 2 Invested $11,290 cash and $2,740 of equipment in the business. 7 Purchased supplies on account for $450. (Debit asset account.) 12 Performed services for clients, for which $1,303 was collected in cash and $689 was billed to the clients. 15 Paid August rent $634. 19 Counted supplies and determined that only $263 of the supplies purchased on August 7 are still on hand. Date Account Titles and Explanation Aug. 12
Answer:
1200
Explanation:
The bank deputy controls the money so then cheyenne repair shop fixes the money through the transactions with the amounting equivalent to the equilibrium of the bank and the transactions so you end up with 1200
____ act as the export sales department for a manufacturer. Group of answer choices International freight forwarders Shippers associations Export management companies Export trading companies
Answer:
Export management companies
Explanation:
Export management companies acst as the export sales department for a manufacturer.
Export management companies refers to firms that helps in the distribution of goods produced by other firm's in the international market. They export goods on behalf of other firm's.
Export management companies are independent companies that provides support services for other firms engaged in exporting. Services rendered by export management companies includes: insuring, billing, shipping, warehousing among others.
They also help to provide important information that will improve the quality of product to firms who hire them.
The closing entries show a debit to retained earnings of $350, and a credit to retained earnings of $750. There was also a credit to dividends payable of $100. This company had a:
Answer:
net income = $400
Explanation:
closing entries:
Dr Retained earnings 350
Cr Income summary 350
Dr Income summary 750
Cr Retained earnings 750
Dr Retained earnings 100
Cr Dividends 100
net income = $750 - $350 = $400
Dividends reduce retained earnings, but net income must exist before any dividends can be distributed.
QUESTION 2
You spend RM 50,000 a year with e-book website and has done so for many years and now you are having some issues with the publisher. In your meeting with an e-book publisher representative, a particular e-book from the website has become too expensive at RM 50 a month, and it caused you to earn some extra income. You are going to unsubscribe if they do not change the subscription plan. What would you do if the representative suggested for a "free" subscription for your customer for a few months?
Answer:
would accept the offer
Explanation:
Yes, this appears to be a cost-effective decision because the fact is that, I have been spending for years with this particular e-book website and by offering me a "free" subscription for a few months gives me ample time to adjust to the new subscription fee. I it even caused me to earn some extra income.
It a common practice for some businesses to offer free subscription plans to all or some of their customers for a brief time period after which they will start paying.
Ceteris paribus, if personal taxes are increased, consumer spending will ____________ and the aggregate demand curve will shift to the ______________.
Answer:
decrease, left
Explanation:
In simple words, when the authorities increase personal taxes in the community the disposable income of the individuals decrease. Disposable income refers to the net income that individuals get in hand for their spending on utilities.
Thus, due to less disposable income the spending will decrease which will further lead to decrease in demand, theretofore, shifting the demand curve to the left.
A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.
A. True
B. False
Answer:
false
Explanation:
Live Preview, found in the Font group, uses which method for seeing different font sizes without committing to them?
double-clicking the sizes on the Size drop-down list
pointing the mouse pointer to the sizes on the Size drop-down list
Oright-clicking the cell and clicking Preview Size on the drop-down list
clicking the sizes on the Size drop-down list
Answer:
pointing the mouse pointer to the sizes on the Size drop-down list
Live preview is the feature inbuilt in various new gadgets, Words, and Excel. It enables the user to preview the type of font, the color, the table style, the cell style, the number style, and many more without making the changes in the existing files.
The correct option is "pointing the mouse pointer to the sizes on the Size drop-down list".
The method or the way by which the font group can be live previewed is by simply pointing the mouse pointer over the toolbar where the font group is displayed under the Home tab. The pointer is simply dragged to various font sizes to see the live preview of each font style.
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If political influences, independent of any economic forces, lead to a larger government budget deficit, what will be the effect on the loanable funds market
Answer:
The government budget deficit will cause the interest rate to rise, reducing both saving and investment.
Another effect will be the crowding-out of the loanable funds market to private investment. This is because a government in deficit will need to issue more debt in the market, taking up many funds that could have been otherwise invested in private companies.
Capital budgeting is the process of planning and controlling investments in assets that are expected to produce cash flows for one year or less. This statement is: False True
Answer:
false
Explanation:
Capital budgeting is the process taken to evaluate and determine the profitability of an investment. capital budgeting can be done for projects that have cash flows of more than one year
capital budgeting methods include :
Net present value
internal rate of return
accounting rate of return
payback period
The offering price of an open-end fund is $12.30 per share and the fund is sold with a front-end load of 5%. What is its net asset value?
Answer:
$11.685
Explanation:
Calculation for the net asset value
Since the front-end load is 5% this means that we are going to deduct 5% from 100% which will give us 95%, therefore 95% will be our front-end load percentage.
Now let find the Net asset value
Using this formula
Net asset value=Front-end load Percentage × Offering price
Let plug in the formula
Net asset value=95%×$12.30
Net asset value=$11.685
Therefore the Net asset value will be $11.685
rockwell corp just paid a dividend of .50. analysts expect their dividends to increase by 7% every year for the next 3 years, and then have a constant dividend growth rate of 2% after year 3. If your required return is 8% what is the present value of the stock?
Answer:
Price of share today = $9.74
Explanation:
The price of a share can be calculated using the dividend valuation model
According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price=Do (1+g)/(k-g)
Do - dividend in the following year, K- requited rate of return , g- growth rate
Step 1 : PV of dividend from year 1 to 3
PV = D × (1+r)^(-n)
D- dividend receivable in a particular year, r- required rate of return, n- year
Year PV of Dividend
1 0.50 × 1.07^1 ×1.08^(-1) = 0.495
2 0.50 × 1.07^2 ×1.08^(-2) = 0.491
3 0.50× 1.07^3× 1.08^(-3) = 0.486
Step 2 : PV of dividend from year 4 to infinity
PV (in year 3 terms) of dividend= 0.50× 1.07^3 ×1.02/(0.08-0.02) = 10.41
PV in year 0 terms = 10.41 × 1.08^(-3) = 8.27
Total Present Value = 0.495 + 0.491 + 0.486 + 8.27 = 9.738
Price of share today = $9.74
Clark Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio
Answer:
contribution margin ratio= 0.4
Explanation:
Giving the following information:
Selling price per unit= $20
Unitary variable cost= $12
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= (selling price - unitary variable cost) / selling price
contribution margin ratio= (20 - 12) / 20
contribution margin ratio= 0.4
The contribution margin ratio is 0.4.The contribution margin ratio is the difference between company sales and variable costs, expressed as a percentage.
What is the contribution margin ratio?The total margin generated by an entity represents the amount of revenue available to cover fixed costs and generate profits.
The contribution margin ratio of a donation is the difference between a company’s sales and variable costs, expressed as a percentage. This ratio shows the amount of money available to cover fixed costs.
Giving the following information:
Selling price per unit is $20
Unitary variable cost is $12
To calculate the contribution margin ratio, we need to use the following formula:
[tex]\rm\,Contribution \;Margin\; Ratio= \frac{(Selling\; Price - Unitary Variable Cost)}{selling \;price} \\contribution \;margin\; ratio= \dfrac{ (20 - 12)}{20}\\Contribution\, margin\, ratio\, = 0.4[/tex]
Hence, the contribution margin ratio is 0.4.
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Sketches Inc. purchased a machine on January 1, 2016. The cost of the machine was $29,000. Its estimated residual value was $9,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,100 units in 2016 and 1,550 units in 2017. Required: a. Calculate depreciation expense for 2016 and 2017 using the straight-line method.
Answer:
Annual depreciation= $4,000
Explanation:
Giving the following information:
The cost of the machine was $29,000. Its estimated residual value was $9,000 at the end of estimated 5-year life.
To calculate the depreciation expense, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (29,000 - 9,000)/5
Annual depreciation= $4,000
Prepare the issuer's journal entry for each of the following separate transactions. On March 1, Atlantic Co. issues 43,000 shares of $3 par value common stock for $299,000 cash.On April 1, OP Co. issues no-par value common stock for $71,000 cash.On April 6, MPG issues 2,100 shares of $20 par value common stock for $40,000 of inventory, $140,000 of machinery, and acceptance of a $90,000 note payable.
Answer:
March 1
Cash $299,000 (debit)
Common Stock $129,000 (credit)
Share Premium $170,000 (credit)
April 1
Cash $71,000 (debit)
Common Stock $71,000 (credit)
April 6
Inventory $40,000 (debit)
Machinery $140,000 (debit)
Common Stock $42,000 (credit)
Share Premium $48,000 (credit)
Note Payable $90,000 (credit)
Explanation:
Any cash paid in in excess of the par value for par value share is Accounted for in the Share Premium reserve.
No Par Value share do not have a Share Premium Reserve.
In the business world, a _________________ is recognized as a legally acceptable way for any business to keep knowledge of its particular methods of production from being known by competing firms.
Answer:
Trade secret
Explanation:
A trade secret refers to things like a process, formula or design that a company owns that have an economic value and provide a competitive advantage and that are known only by certain people inside the organization. According to this, the answer is that in the business world, a trade secret is recognized as a legally acceptable way for any business to keep knowledge of its particular methods of production from being known by competing firms because trade secrets refer to intellectual property that allows the organization to have a competitive advantage and they are maintained as a secret to avoid competing firms to copy its methods.
A firm selling its product for $25,000 has overproduced, increasing inventory by 40,000 units at a cost of $15,000 per unit. What is the impact of the inventory change on cash flow?
Answer:
Increasing Inventory by 40,000 units at a cost of $15,000 per unit
The Cost of producing 40,000 units extra = $40,000 *$15,000 = $600,000,000
Conclusion: As this is an additional cost incurred by the firm by increasing inventory by 40,000 unit at $15,000 per unit, it will be term as cash outflow. The impact of the inventory change on cash flow is outflow.
Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,600 cushions and 15,500 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 13,000 cushions November 15,000 cushions December 18,000 cushions Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet 20 percent of the following month's budgeted sales. Five pounds of raw materials, at a standard cost of $0.90 per pound, are required to produce each cushion. Required a. Prepare a production budget for October and November. Do not use a negative sign with your answers.
Answer:
Production budget for October and November
October November
cushions cushions
Budgeted Sales 13,000 15,000
Add Budgeted Closing Inventory 3,000 3,600
Total Production needed 16,000 18,600
Less Budgeted Opening Inventory (2,600) (3,000)
Production Budget 13,400 15,600
Explanation:
A Production Budget shows the quantities of finished goods that must be produced to meet expected sales plus any increase in inventory levels that might be required.
Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: Estimates made at the beginning of the year: Estimated machine-hours 40,600 Estimated variable manufacturing overhead $ 6.54 per machine-hour Estimated total fixed manufacturing overhead $ 944,762 Actual machine-hours for the year 36,700 The predetermined overhead rate for the recently completed year was closest to:
Answer:
The predetermined overhead rate is 29.81 per machine hour
Explanation:
Fixed predetermine overhead rate = Estimated fixed manufacturing overhead / Estimated machine hour
Fixed predetermine overhead rate = $944,762 / 40,600
Fixed predetermine overhead rate = $23.27 per machine hour
Total predetermine overhead rate = Fixed predetermine overhead rate + Estimated variable manufacturing overhead
= $23.27 + $6.54
= 29.81 per machine hour
Fernando Designs is considering a project that has the following cash flows and WACC data. What is the project's discounted payback period? (6 points) What is the project’s modified internal rate of return?
Answer:
Discounted Payback period 3 years
Modified Internal rate of return 4.833%
Explanation:
Fernando Designs has following cash flows ,
year 1 : -$900
Year 2 : $500
Year 3 : $500
Year 4 : $500
Using 10% discount factor the cashflows will be,
discounted values
Year 1 : -900
Year 2 : 454.54
Year 3 : 445.45
Year 4 : 4132231
Payback period is -900 + 454.54 +445.45 = 3 years.
Modified Internal rate of return; [tex]\sqrt[n]{\frac{FV of cash inflows}{PV of cash outflow} }[/tex]
[tex]\sqrt[4]{\frac{1314}{900} }[/tex] = 4.833%
Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. Equivalent Units of Production Direct Materials Conversion Units Completed and transferred out 52,000 52,000 Units in Ending Work in Process: Direct Materials (18,000 * 100%) 18,000 Conversion (18,000 * 80%) 14,400 Equivalent Units of Production 70,000 66,400 Cost per Equivalent Unit Costs of beginning work in process $ 43,600 $ 63,900 Costs incurred this period 145,500 195,700 Total costs $ 189,100 $ 259,600 Cost per equivalent unit $ 2.70 per EUP $ 3.91 per EUP If the units completed were transferred to the Labeling Department, what is the appropriate journal entry to transfer the conversion costs
Answer:
DR Work in Process—Labeling................ $203,320
CR Work in Process—Canning......................................... $203,320
(To record transfer of conversion costs to Labelling Department.)
Units completed in the Canning department are 52,000 and costs per equivalent units of production for conversion is $3.91.
Total costs of conversion is therefore;
= 52,000 * 3.91
= $203,320
Your university is considering two projects to increase enrollment: offering traditional classes from midnight to 6 a.m. or offering house call classes where the professor would visit your home to provide instruction. Use a simple scoring model with at least three criteria to evaluate these two potential projects and indicate which project should be chosen.
The correct answer to this open question is the following.
The criteria for our simple scoring model will bee the following:
Project 1. Midnight to 6:00AM
CRITERIA. WEIGHT SCORE
-Number of teachers 3 3
-Teachers salaries. 3 3
-Classroom cost. 1 1
-N. Students 2 2
Project 2. Home visit.
-Number of teachers 3 3
-Teachers salaries. 3 3
-Transportation. 3 3
-N. Students. 3 3
As we can see in the tables, project 1 is more feasible because depending on the number of students, the school can use one or two classrooms which means hiring teachers according to the number of students registered in a class.
On project 2, the variables increased the costs and the risk because depending on the number of students and the classes needed, the school would have to hire many teachers for different class times. This could be exponential. Another issue to consider is the fact that on project number 2, the school has to pay for the transportation of teachers to the student's home.
So in general terms, project 1 is more feasible.
You write a call option on Google. The current price of one share of Google is $400, the option strike price is $410, and the option premium is $5 (all prices are per share). On the expiration day, the price of Google is $425. The following statement is true:
A) The call is in the money
B) your payoff is negative
C) your payoff is positive and equal to 10
D) A and B
E) A and C
Answer: E) A and C
Explanation:
A Call option is an option to buy a security at a certain price in future. The option is only exercised if the market price of the security is higher than the option price of the security. When this happens the Call is said to be in the money. On expiration day, the price of Google is $425 which is higher than the option price of $410 so the Call is in the money. Option A is correct.
The option premium is the amount paid for the option contract and so is an expense. Payoff is calculated as;
= Market Value - (Option Price + Option premium)
= 425 - ( 410 + 5)
= $10
Option C is correct as well.
"A technical analyst has identified a resistance level for ABC stock at $81 and a support level at $75. The stock is currently trading at $77 and the analyst expects the stock to break the resistance level. Which order is appropriate to profit if the resistance level is broken?"
Answer:
Buy 100 ABC at $82 Stop
Explanation:
In the financial markets a resistance is an upper limit block on the market moving upward (buy). While the support is the lower limit on the market moving down (sell).
In this scenario we have a support of $75, resistance of $81 and the stock.is currently trading at $77. Just below the resistance.
If the analyst expects the stock to break the resistance of $81 then he should set a trade that is a buy since the market will go above $81.
When the market breaks a resistance it is expected to sky rocket, so the analyst will set a trade stop at $82, so that when the market is coming back down to the resistance level it will stop before it gets to $81.
On the other hand if a support is expected to be broken a sell trade is placed.
g The AD curve is the relationship between A. the quantity of real GDP demanded and the quantity of real GDP supplied. B. the quantity of real GDP demanded and the unemployment rate. C. aggregate planned expenditure and real GDP when the price level is fixed. D. aggregate planned expenditure and the price level. E. aggregate planned expenditure and the quantity of real GDP demanded.
Answer:
D. aggregate planned expenditure and the price level.
Explanation:
Aggregate demand (AD) can be defined as the total amount spent on domestic goods and services in an economy. It is called total planned expenditure by economists.
Aggregate demand (AD) consist of four components of demand:
1. Consumption
2. Savings
3. Government spending
4. Net export, that is, export minus import.
The aggregate demand (AD) curve shows the relationship between total spending on domestic goods and services at each price level.
D. aggregate planned expenditure and the price level is the correct answer.
A guitar manufacturer is considering eliminating its electric guitar division because its $100,280 expenses are higher than its $94,300 sales. The company reports the following expenses for this division.
Avoidable Unavoidable
Expense Expense
Cost of goods sold $56, 000
Direct expenses 9,250 $1,250
Indirect expenses 470 1, 600
Service department costs 6,000 1,430
Should the division be eliminated?
Electric Guitar Division is: Kept Eliminated
Sales 72,000
Expenses:
Direct expenses 1,250
Indirect expenses 1,600
Service department costs 1,430
Cost of goods sold 56,000
Total expenses 56,000 4,280
Net income (loss) 4,280
Revenues from electric guitar division
Avoidable expenses
Revenues are greater than (less than) avoidable expenses by
The electric guitar division should be:________.
Answer:
The electric guitar division should be: KEPT.
Explanation:
Avoidable Unavoidable
Expense Expense
Cost of goods sold $56, 000
Direct expenses $9,250 $1,250
Indirect expenses $470 $1,600
Service department costs $6,000 $1,430
total $71,720 $4,280
I believe that the $100,280 expenses and $94,300 sales are wrong, because total costs = $76,000. I looked up for more information and the correct sales number was $72,000.
differential analysis
division kept division sold differential
amount
revenues $72,000 $0 $72,000
COGS -$56, 000 ($56,000)
direct expenses -$9,250 -$1,250 ($8,000)
indirect expenses -$470 -$1,600 $1,130
service costs -$6,000 -$1,430 ($4,570)
total $280 -$4,280 $4,560
Alternative price indexes
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the
______________ using _____________ by the
______________ using_____________ and multiplying by 100. However, the CPI reflects only the prices of all goods and services _________
Indicate whether the price change described in each scenario may affect the GDP deflator or the CPI for the United States.
Scenario Show up in the..
GDP Deflator CPI
An increase in the price of a Japanese-made phone that is popular
among U.S. consumers
A decrease in the price of a Fisher King deep-water reel, a popular
recreational fishing product built in Rarington, Indiana
Answer:
-value of all goods and services produced in the economy this year
-this year's prices
-value of all goods and services produced in the economy this year
-the base year's prices
-bought by consumers
-the first scenario would have effect on the GDP deflator
-the second scenario would have effect on the GDP deflator
Explanation:
The GDP deflator is used in measuring inflation in the economy by measuring changes in prices of goods in the economy. It is used together with other indices such as consumer price index in arriving at a more accurate or balanced measurement of inflation I'm the economy. The GDP deflator would be affected above because it is more comprehensive in it's calculation or measurement as it doesn't take into account only a basket of goods and services like the Consumer price index does