The chain-weighted index for GDP and the CPI differ in that the CPI
A) asks how much a fixed basket of goods costs in the current year as compared to the cost of those same goods in a base year while the chain-weighted index takes an average of price changes using base years from neighboring years.
B) excludes price changes from used and imported goods while the chain-weighted index includes these price changes.
C) is calculated by the Commerce Department while the chain-weighted index is calculated by local newspapers.
D) is calculated in nominal terms and the chain-weighted index is calculated in real terms.
A
You might also like to view...
If the price of hamburger rises, we would expect the demand for steak to shift to the right.
Answer the following statement true (T) or false (F)
The increase in the capital stock equals the amount of
A) gross investment. B) depreciation. C) net investment. D) private sector spending.
Do macroeconomic issues concern the well-being of the typical individual member of an economy?
A) No, since we are focusing on the behavior of aggregate quantities. B) No, since most individuals have little contact with other economies in the world. C) Yes, since macroeconomic events have widespread effects on everyday lives. D) Yes, since macroeconomics focuses on the decisions constantly being made by the average individual.
Which of the following is most likely to have an income elasticity greater than 1?
a. Pork b. Fine wine c. Gasoline d. Rental housing