Answer the following questions true (T) or false (F)
1. Housing is the largest component of the U.S. CPI market basket.
2. The GDP deflator is the best measure that reflects the prices of goods and services purchased by the typical household.
3. The inflation rate measures the percentage increase in the price level from one year to the next.
1. TRUE
2. FALSE
3. TRUE
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An increase in the public debt and its subsequent repayment will tend to
A. make the income distribution more equitable in the U.S. B. mildly increase the income inequality in the U.S. C. mildly reduce the income inequality in the U.S. D. have no impact on the income distribution in the U.S.
Income mobility tells us:
A. how likely people are to seek out opportunities to better themselves. B. the inflation rate associated with wages across all jobs in a country. C. how available the opportunity to better oneself is in the economy. D. the inflation rate relative to the cost of living in a country.
An increase in the price level in the aggregate expenditures model would ________.
A. increase aggregate expenditures and shift the AD curve to the right B. decrease aggregate expenditures and shift the AD curve to the left C. increase aggregate expenditures but would not shift the AD curve D. decrease aggregate expenditures but would not shift the AD curve
Because of hurricanes in Florida, the supply of oranges has substantially decreased. This statement indicates that:
A. the demand for oranges will necessarily rise. B. the equilibrium quantity of oranges will rise. C. the price of oranges will fall. D. the amount of oranges that will be available at various prices has declined.