The consumer price index:
A. measures the increase in the cost of the market basket relative to the cost in a given base year.
B. is always 100 in the final year of measurement.
C. helps us understand why the cost of living today compares with the cost of living at some time in the past.
D. is a perfect measure of how prices change for all goods and services in the economy.
A. measures the increase in the cost of the market basket relative to the cost in a given base year.
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Which of the following is not an advantage of fiscal federalism?
a. It allows people to "vote with their feet." b. It facilitates intergovernmental comparisons. c. It increases the ability of government to bargain with bureaucracies. d. It can limit the costs of government programs to those who benefiting from them.
If two firms are producing the exact same product, it ________ possible for the firms to earn economic profit in a Cournot oligopoly and it ________ possible for the firms to earn economic profit in a Bertrand oligopoly.
A) is; is B) is not; is not C) is not; is D) is; is not
Labor productivity is defined as
a. the amount of output a typical worker turns out in an hour of work. b. the amount of output the best worker turns out in a day of work. c. the amount of output improvement in a year of work. d. the amount of average output improvement for a team in a year of work.
The equilibrium in the market for loanable funds is:
A. where the amount being saved is enough for banks to cover required reserves. B. at the price at which the quantity supplied is slightly greater than quantity demanded. C. where the amount being borrowed and the amount being saved is the same. D. at the interest rate set by the Fed.