Substitution bias causes the CPI to understate the increase in the cost of living from one year to the next
a. True
b. False
Indicate whether the statement is true or false
False
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The _____ demand for money is most sensitive to interest rate changes.
A. transactions B. precautionary C. speculative
Equilibrium gross domestic product (GDP) in the short run is determined at the point where
A. gross domestic production equals aggregate demand. B. the rate of unemployment equals zero. C. domestic production equals domestic consumption. D. imports equal exports.
Sugarcane can be used to produce both granulated sugar and ethanol. Recent regulations in certain countries now permit a higher amount of ethanol to be added to gasoline. An economist would expect sugarcane prices to ____, and quantity sold to ____.
A. rise; rise. B. fall; fall. C. rise; fall. D. fall; remain the same.
What is a "marginally attached worker"?
What will be an ideal response?