Different inflation rate

Assignment Help Business Economics
Reference no: EM13976420

In 2011, the CPI increased by 1.4%, the GDP price index increased by 1.2% and the PCE increased by 1.8%, we can see all are increases, but why does each one of these measure give a different inflation rate?

Reference no: EM13976420

Questions Cloud

Consumer incomes increased : If shoes and socks are complements and both are normal goods, show graphically what would happen to the consumption of shoes and socks if  the price of shoes decreased. consumer incomes increased. Use the graph to visualize the changes.
What price should firm charge to realize targeted profit : An auto-service establishment has estimated its monthly cost function as follows: What price should the firm charge to realize the targeted profit? What would be its (cost-based) markup ratio? Now suppose the demand curve the firm faces is: Q = 3000 ..
Higher the fixed cost the lower break-even output quantity : Assuming a constant marginal cost, a lower price elasticity of demand would call for a relatively lower mark-up ration. Mark-up pricing might be more suitable for monopolies. The higher the fixed cost the lower the break-even output quantity.
What would be its markup ratio : An auto-service establishment has estimated its monthly cost function as follows: Where Q is the number of cars it services each months and TC represents its total cost. The firm is targeting 35,000 net monthly profit servicing 2000 cars. What price ..
Different inflation rate : In 2011, the CPI increased by 1.4%, the GDP price index increased by 1.2% and the PCE increased by 1.8%, we can see all are increases, but why does each one of these measure give a different inflation rate?
Plans to expand the human resource base of its operation : You are the manager of a firm that plans to expand the human resource base of its operation by hiring additional business school graduates over the next few years. That same article reports that the shakeup of upper-management is over at U.S. firms, ..
Discuss price elasticity of demand-cross-price elasticity : Discuss both the price elasticity of demand and the cross-price elasticity of demand conditions facing a firm in a monopolistically competitive industry. Include in your essay the role of advertising and the creation of brand loyalty.
Does omega operate in a perfectly competitive market : Omega Travel competes in the highly competitive market for travel. Consumers know that Omega has the best agents in the industry and offers superior service. Nonetheless, Omega earns zero economic profits because numerous competitors have entered the..
Consumer incomes increased : If shoes and socks are complements and both are normal goods, show graphically what would happen to the consumption of shoes and socks if the price of shoes decreased. consumer incomes increased.

Reviews

Write a Review

Business Economics Questions & Answers

  What is the cost to lavaland of moving from point e

What is the cost to Lavaland of moving from point E to point F. Illustrate what general economic principle is being illustrated.

  Assuming that prices are set competitively

Assuming that prices are set competitively (i.e. set equal to MC of producing services), show in a supply-demand graph how we could measure the “efficiency loss” (or deadweight loss) associated with health care over-consumption.

  Explain change in demand or supply

Suppose you are told that price of Toyotas' has increased from last year as has the number bought and sold. Is this an exception of the law of demand, or has there been a change in demand or supply that could account for it.

  Firms short-run demand for labor downward-sloping

Recall that the Law of Demand states that demand curves are always downward-sloping. That is, people want to buy more of some good when its price is lower. Why is a firm’s short-run demand for labor downward-sloping?

  With respect to tariffs and quotas

With respect to tariffs and quotas, it can generally be said that:

  What is the interval which would contain

Illustrate what is the estimated KWH also illustrate what is the interval which would contain 95 percent of such estimates.

  Variability of demand seem to have on buffer stock

Illustrate what is the annual cost for chocolate syrup buffer stocks. Illustrate what impact does the variability of demand seem to have on buffer stock.

  Economic-analytical consequences for the macro economy

Do you favor tariffs and quotas by the U.S. on international trade? In what circumstances? What kinds of products? And why? Are you concerned about retaliatory tariffs and quotas as a result of our action? Are there economic-analytical consequences f..

  Monetary base is held outside ?nancial institutions

33 % of monetary base is held outside ?nancial institutions. Where do you think this portion of the monetary base is held exactly? Under what conditions might it return to the banking system?

  Income will each acre generate

How much income will each acre generate. What are the TR moreover MR for each acre.

  Q1 one of the most important areas of economic that namely

q1. one of the most important areas of economic that namely use of leading economic indicators to forecast the future

  Breakdown of the sections within the body

Write a five-to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis you will discuss the financial health of this company with the ultimate goal ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd