To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors
A) the core PCE deflator inflation rate.
B) the core GDP deflator inflation rate.
C) the GDP price deflator.
D) the producer price index.
E) the CPI.
A
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Assume an economy produces only hamburgers and hotdogs and the base year is 2005. Quantity producedPrices 2005200620052006Hamburgers2,0003,0002$3Hotdogs3,0004,0001$1.50Given the data in the table above, what is the value of real GDP in 2006?
A. $ 7,000 B. $ 5,000 C. $10,000 D. $10,500
Use the following table to answer the next question.YearNominal Income (dollars)CPIReal Income (dollars)1$44,600130 2$48,200 $35,1833$51,000139 What is the value of the CPI in Year 2?
A. 137 B. 1.37 C. 73 D. 0.73
Everything else constant, a stronger dollar will mean that
A) vacationing in England becomes more expensive. B) vacationing in England becomes less expensive. C) French cheese becomes more expensive. D) Japanese cars become more expensive.
The balance of trade is part of the current account which is part of the balance of payments.
Answer the following statement true (T) or false (F)