Answer to: Explain how the CPI is computed. By signing up, you'll get thousands of step-by-step solutions to your homework questions. You can also...
Understanding and measuring the CPS enables marketers to cut expenses, improving profit and enhancing efficiency. The CPS is computed by dividing the whole amount of money spent on the ad campaign (the cost) by the total number of sales made. While cost per sale may be used to any adve...
CPI and inflationEconomics is a social science which is concerned with the production, distribution and consumption of goods and services. This branch studies how different economic agents in the market interact with each other and how they allocate...
Explain why monetary policy makers believe that it is important to start restraining growth in aggregate demand before there is a noticeable increase in the CPI. How do lower prices impact deflation? Since the negative effects of inflation depend in large part on having inflation unexpectedly aff...
When measuring economic activity, fully explain the differences between GNP and NNP. Explain the following concepts in detail: GDP and GNP. What is GDP and why is it important? Explain the two main methods used to measure GDP. How do you calculate GDP using the expenditure method and the in...
In calculating the real GDP of an economy, explain whether you would use the GDP deflator or the CPI. Define Real GDP. If the real GDP is $52000 and the nominal GDP is $65000, calculate the price index taking base = 100. How is the GDP/national income computed by using...
Explain how the CPI is computed. Explain the basics of how a market system works. Explain the models of an oligopolistic market. Explain price discrimination with an illustrated example. In at least one complete paragraphs, answer the following: Explain the concept of the Federal Funds rate a...
Inflation: Inflation refers to the increase in the prices of essential services and goods in the economy. It erodes the purchasing power of money hence negatively affecting the economic progress of a country. For instance, a currency buys a lesser amount of goods as compared to...
Using a non-numerical example, explain how firms should decide how many employees to hire.Qualitative:Qualitative analysis or method is the technique where non-numerical data such as opinions, experiences, thoughts, brainstorming, etc., are used to answer specific questions or f...
Explain how the unemployment rate is defined and computed. Economists estimate the target rate of unemployment in order to determine: a. the unemployment rate. b. the inflation rate. c. the level of output. d. potential output. Discuss the relation between the productivity of labor...