We calculate many different kinds of price indexes:

A. in order to capture a complete picture of how price changes are affecting the economy.
B. to see how the prices of different groups of goods are changing.
C. to measure how different groups of people in the economy are being affected by changing prices.
D. All of these statements are true.


D. All of these statements are true.

Economics

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In our modern financial system, money is created

A) only by central banks. B) only by the banking system. C) by central banks and the banking system. D) only by federal governments.

Economics

Suppose that over the past year, the real interest rate was 3 percent and the inflation rate was 1 percent. It follows that

a. the dollar value of savings increased at 2 percent, and the purchasing power of savings increased at 3 percent. b. the dollar value of savings increased at 2 percent, and the purchasing power of savings increased at 4 percent. c. the dollar value of savings increased at 4 percent, and the purchasing power of savings increased at 2 percent. d. the dollar value of savings increased at 4 percent, and the purchasing power of savings increased at 3 percent.

Economics

According to the graph shown, the consequence of expansionary fiscal policy is:

A. a greater level of potential output. B. inflation. C. deflation. D. a lower level of potential output.

Economics

Both tariffs and quotas will restrict supplies coming into the country from abroad.

Answer the following statement true (T) or false (F)

Economics