How do free products make the calculation of GDP more difficult? What are hedonic adjustments and why
Question:
How do “free” products make the calculation of GDP more difficult? What are hedonic adjustments and why are they necessary? Will inflation tend to be overstated or understated if quality improvements are not accounted for?
Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (2 reviews)
Free products can make the calculation of Gross Domestic Product GDP more difficult because GDP is t...View the full answer
Answered By
Sinmon Warui Kamau
After moving up and down looking for a job, a friend introduced me to freelance writing. I started with content writing and later navigated to academic writing. I love writing because apart from making a living out of it, it is also a method of learning and helping others to learn.
5.00+
40+ Reviews
45+ Question Solved
Related Book For
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
Question Posted:
Students also viewed these Business questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
KEEP EMPLOYEES HEALTHY Controlling Health Status and Healthcare Cost of Employees Force 6: Employee Health. With the dramatically increasing cost of healthcare and the fact that in the United States,...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
A random queue is a collection that supports the following API: Write a class RandomQueue that implements this API. Use a resizing array. To remove an item, swap one at a random position (indexed 0...
-
The Canadian Consumer Price Index was approximately 98.5 (base year 1992) at the beginning of 1991. If inflation continued at an average annual rate of 3%, what would the index be at the beginning of...
-
In negotiations for the purchase of a ranch, Adler (the seller) discussed water rights with Folt, the buyer. Adler never mentioned an ongoing dispute she had over such rights with a neighboring...
-
The flowrate in the clay-lined channel \((n=0.025)\) shown in Fig. P10.54 is to be \(300 \mathrm{ft}^{3} / \mathrm{s}\). To prevent erosion of the sides, the velocity must not exceed \(5 \mathrm{ft}...
-
Veritas Emerging Market Fund specializes in investing in emerging stock markets of the world. Mr. Henry Mobaus, an experienced hand in international investment and your boss, is currently interested...
-
A loan has a stated annual rate of 19.71%. If loan payments are made monthly and interest is compounded monthly, what is the effective annual rate of interest? You invest $3,679.00 at the beginning...
-
Tina walks into Teds sporting goods store and buys a punching bag for $100. That $100 payment counts as for Tina and for Ted. a. income; expenditure b. value added; multiple counting c. expenditure;...
-
Why is gross output a better measure of overall economic activity than GDP is? How could you construct a new statistic that focuses only on nonfinal economic activity? Given what you know about the...
-
As a manager, which type of reinforcement would you most likely use with your employees: positive or negative reinforcement? Discuss the pros and cons of each approach.
-
An asset manager enters into a one-year equity swap in which he will receive the return on the Nasdaq 100 Index in return for paying a floating interest rate. The swap calls for quarterly payments....
-
In "Central Banks" lecture note "Money creation and control 4", suppose that the transaction changes to the following: the Fed. decides to reduce money supply by selling $0.5 M TBills to each of Bank...
-
A 25.0 kg asteroid initially at rest and located at 6.37 x 10 10 m from the center of Earth accelerates toward Earth due to Earth's gravity. What is the speed of the asteroid (in km/s) when it...
-
1 . Discuss the accounting requirements for stock compensation plans under GAAP ( ASC 7 1 8 ) . 2 . Discuss the valuation techniques / models used to estimate the fair value for employee share...
-
The percentage mark obtained by 50 students during a physics exam is presented as a cumulative frequency curve. Estimate the median mark, correct to the nearest integer.
-
Which are prepared first: the year-end financial statements or the general journal adjusting entries? Explain.
-
Establish identity. cos( + k) = (-1)k cos , k any integer
-
Assume a monopsonistic employer is paying a wage rate of W m and hiring Q m workers, as indicated in Figure 15.8. Now suppose an industrial union is formed that forces the employer to accept a wage...
-
Assume a monopsonistic employer is paying a wage rate of W m and hiring Q m workers, as indicated in Figure 15.8. Now suppose an industrial union is formed that forces the employer to accept a wage...
-
Brenda owns a construction company that employs bricklayers and other skilled tradesmen. Her firms MRP for bricklayers is $22.25 per hour for each of the first seven bricklayers, $18.50 for an eighth...
-
why people irritated, upset and hate a coworker with different race ? Explain
-
Carry out a statistical test of the hypothesis that the coefficient on the low wage dummy is the same in NJ and in PA.
-
Find the amount that needs to be invested if the investors want to receive an annual net income worth 5,400,000 for 7 years. Use Hoskold's Formula to compute the price if the money is worth 8% on a...
Study smarter with the SolutionInn App