small nation of 10 people idolizes the TV show The Voice. All they produce and consume...

 

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small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts: 2020 2021 Karaoke Machines Price Price Quantity (Dollars) Quantity (Dollars) 10 20 50 13 15 30 60 15 CDs Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is 20.00% (Note: Use 2020 as the base year, and fix the basket at 1 karaoke machine and 5 CDs.) Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is 23.53% (Note: Again, use 2020 as the base year.) Which of the following statements is correct? Check all that apply. The CPI allows the basket of goods and services to change. The inflation rate in 2021 is not the same using the two methods. The GDP deflator holds the basket of goods and services constant. small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts: 2020 2021 Karaoke Machines Price Price Quantity (Dollars) Quantity (Dollars) 10 20 50 13 15 30 60 15 CDs Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is 20.00% (Note: Use 2020 as the base year, and fix the basket at 1 karaoke machine and 5 CDs.) Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is 23.53% (Note: Again, use 2020 as the base year.) Which of the following statements is correct? Check all that apply. The CPI allows the basket of goods and services to change. The inflation rate in 2021 is not the same using the two methods. The GDP deflator holds the basket of goods and services constant.

Answer rating: 100% (QA)

ANSWER The following statements are correct The CPI allows the basket of goods and services to chang... View the full answer