The Consumer Price Index (CPI) is an indicator that measures the average change in prices paid by consumers for a representative basket of goods and services over a set period. It is widely used as a measure of inflation, together with theGDP deflator(see alsoGDP Deflator vs CPI). This al...
GDP also does not account for the quality of the goods and services, since there is no simple relationship between the price of the output and the quality of the output. GDP also does not include the cost ofnegative externalities, such as littering and pollution, unless the government forces ...
Paasche’s index, Bowley’s index, and Fisher’s index formulas. Each of the index formulas can be used to compute both a price index and a quantity index. A price index measures the change of price over time for a fixed basket of products and services. A quantity index calculates the...
Answer to: A realtor earned a commission from the sale of a previously owned home. Would this be included in calculating this year's GDP? Explain...
returns, we need to acknowledge a realistic relationship between it and dividend growth. It is a big leap to assume that 4% real GDP growth will translate into 4% growth in dividends per share. Dividend growth has rarely, if ever, kept pace with GDP growth—and there are two good ...