Core inflation:
A. measures price changes for the market basket of the average urban consumer with food and energy costs taken out.
B. is inflation measured using the producer price index.
C. measures the changes in prices for the entire market basket of the average urban consumer.
D. is inflation measured using the retail price index.
Answer: A
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According to the law of supply, when the price of a good increases we would predict that: a. less will be produced
b. less will be consumed. c. more will be produced. d. more will be consumed.
The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about
a. 600 households. b. 6,000 households. c. 60,000 households. d. 6,000,000 households.
Research in the performance of developing nations with exchange rate pegs has shown that:
A) fixed exchange rates are 100% effective in curbing inflation and preventing hyperinflation. B) fixed exchange rates are 100% ineffective in curbing inflation and preventing hyperinflation. C) floating exchange rates are more effective in curbing inflation and preventing hyperinflation. D) fixed exchange rates are neither necessary nor sufficient to curb inflation and prevent hyperinflation.
The growth rate in potential GDP is equal to the growth rate in the population.
Answer the following statement true (T) or false (F)