A chain-weighted index:
A. is used to understate the rate of inflation.
B. uses neighboring years' data to calculate changes in nominal GDP.
C. calculates changes in prices by using an average of base years from neighboring years to obtain a more accurate measure of real GDP growth.
D. is a useful tool for determining which fence to purchase.
Answer: C
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Has world trade increased continually over the 60 years?
What will be an ideal response?
To encourage more investment, Mexico has lowered its tax rates to reduce the user cost of capital. Argentina is unable to pay back its foreign debts, causing its expected future marginal product of capital to fall
Mexico's real exchange rate will ________ and its net exports will ________. A) depreciate; fall B) appreciate; rise C) depreciate; rise D) appreciate; fall
The price elasticity of demand coefficient for gourmet coffee is estimated to be equal to 1.6 . It is expected, therefore, that a 10% increase in price would lead to:
a. a 16% decrease in the quantity of gourmet coffee demanded. b. a 16% increase in the quantity of gourmet coffee demanded. c. an 8% decrease in the quantity of gourmet coffee demanded. d. an 8% increase in the quantity of gourmet coffee demanded.
Calculate the APS.
