The Consumer Price Index (CPI) differs from a chain-weighted price index in that the CPI
A) compares the prices of all goods in one year to the prices of all goods in other years.
B) measures the costs of a typical fixed basket of goods over time, while the chain-weighted index does not.
C) requires calculation of GDP, while the chain-weighted index does not.
D) allows for the goods consumed in an economy to change over time, while the chain-weighted index does not.
B
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Which of the following is omitted in the calculation of GDP?
A) Pension paid to retired workers B) Export of goods C) Capital depreciation D) Interest paid on bank deposits
In the simple Keynesian model, there are three simplifying assumptions. Among these assumptions is:
A) the price level is flexible B) no foreign sector C) the price level is constant until the economy reaches its full-employment level D) the money supply always rises E) b and c
After falling form a peak of 138.1 million in January 2008 to a trough of 129.9 million in September 2010, employment in the U.S. economy:
A. just reached its January 2008 peak in April 2013. B. had only recovered to 135.5 million by April 2013. C. recovered for a year, only to decline further by April 2013. D. rose to over 140 million by April 2013.
A political leader suggesting that an economic downturn will be cushioned by nondiscretionary fiscal policy is referring to
A. tax policy and spending policy. B. interest rates and tax rates. C. interest rates and the money supply. D. a progressive income tax and a welfare state.