Explain how the prices of goods and services used in the CPI differ from the prices reflected by GDP deflator
The CPI focuses on goods and services bought by the typical consumer. The GDP deflator reflects the prices of all domestically produced good and services, not foreign-made goods and not just consumer goods.
You might also like to view...
The idea of the multiplier is that a change in ________ expenditure changes real GDP, which then changes ________ expenditure. The change in total expenditure will be larger than the initial change in ________ expenditure
A) induced; induced; autonomous B) induced; autonomous; induced C) autonomous; induced; autonomous D) induced; autonomous; autonomous E) autonomous; induced; induced
A monopsonist that faces a labor supply curve of the form l = 4w and has a constant marginal revenue product of 50 per unit of l, will opt for the following, w, l combination:
a. w = 10 l = 40. b. w = 25 l = 100. c. w = 50 l = 200. d. w = 100 l = 400.
Wages tend to be sticky
a. because of contracts, social norms, and notions of fairness. b. because of contracts, but not social norms or notions of fairness. c. because of social norms and notions of fairness, but not contracts. d. None of the above are correct.
A standard way to measure income mobility is to compare:
A. people's income at the beginning of their work-life to their income when they retire. B. the education level of people to that of their parents'. C. people's income to their parents' income. D. None of these is a standard way to measure income mobility.