ECONOMICS
GDP
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Subtract CPI from GDP x 100
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compare the percentage change in the value of market baskets
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Market Basket 1-Market Basket 2 /Market Basket 1 x 100
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GDP per capita/ 100
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Detailed explanation-1: -A market basket is a selected mix of goods and services that tracks the performance of a specific market or segment. A popular market basket is the Consumer Price Index (CPI), which provides an estimate for inflation based on the average change of price paid for a specific basket of goods and services over time.
Detailed explanation-2: -What Is a Basket of Goods? The consumer price index (CPI), a common measure of inflation, measures the price change over time for a basket of goods and services. The basket is representative of consumer spending patterns, and the change in its price represents the rate of inflation faced by consumers as a whole.
Detailed explanation-3: -Specifically, the CPI measures the average change in price over time of a market basket of consumer goods and services. The market basket includes everything from food items to automobiles to rent.
Detailed explanation-4: -The cost of a market basket is used to determine the CPI index, which indicates how much prices have changed over time. To calculate the cost of a CPI market basket, multiply basket prices for each category by the predetermined weight and sum the results.