Ask Question
BusinessBusiness
24 February, 11:04

If a Pennsylvania gun manufacturer raises the price of rifles it sells to the U. S. Army, its price hikes will increase a. both the CPI and the GDP deflator. b. neither the CPI nor the GDP deflator. c. the CPI but not the GDP deflator. d. the GDP deflator but not the CPI.

+2
Answers (1)
  1. 24 February, 11:27
    0
    D. The GDP deflator but not the CPI

    Explanation:

    GDP deflator is a tool used in measuring the changes in prices of goods and services produced in the country. It is measured by dividing nominal GDP with the real GDP. Since the Gun is part of the GDP, hike in prices will affect the GDP deflator.

    On the other hand Consumper price index measures changes in prices of basket of goods and services consumed by households. The guns are not been bought by households but rather they are bought by the army in the US. Therefore changes in the price doesn't affect CPI.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If a Pennsylvania gun manufacturer raises the price of rifles it sells to the U. S. Army, its price hikes will increase a. both the CPI and ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Cotton created the antebellum South. The wildly profitable commodity opened a previously closed society to the grandeur, the profit, the exploitation, and the social dimensions of a larger, more connected, global community.
Answers (1)
What would you do if one morning you will wake up in extreme poverty?
Answers (1)
Stuart Allen Company manufactures computer hardware. The president of the company bought a new car as a gift for his daughter and paid for it using cash from the business. Since the company paid for the car, it was recorded in its books as an asset.
Answers (1)
eBay question I know there are fees for eBay when you sell something but I don't know exactly so I just wanted to ask if I were to sell something for $10 on eBay how much money would I make?
Answers (1)
A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: 95,000 70,000 109,000.
Answers (1)
New Questions in Business
A trade show is usually focused on what? a. an employer b. an industry c. a school d. a craft
Answers (1)
The Harrisburg Store has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities of $3,908. How many dollars' worth of sales are generated from every $1 in total assets
Answers (1)
Select all maintenance procedures that may be performed in an office. update software replace printer cartridges clean copy machines install virus-protection software print copies to be distributed at a meeting
Answers (1)
Increases to owner's equity may be from expenses that are incurred. expenses exceeding revenue for the period. withdrawals of cash from the business by the owner. revenue that is derived from sales of goods or services
Answers (1)
Now consider a strangle using the same call with a strike price of $100 and a different put with a strike price of $95. Both have the same expiration date.
Answers (1)
Home » Business » If a Pennsylvania gun manufacturer raises the price of rifles it sells to the U. S. Army, its price hikes will increase a. both the CPI and the GDP deflator. b. neither the CPI nor the GDP deflator. c. the CPI but not the GDP deflator. d.
Sign Up Forgot Password?