The presence of new goods that are of higher quality than the old goods leads the BLS to
A) update the market basket every time a new good is available.
B) do nothing because at least some people still buy the old goods.
C) try to separate price differences from improvements in quality.
D) actually understate the cost of living when calculating the CPI.
E) immediately update the reference base period used in calculating the CPI.
C
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Many countries in Latin America experienced raging _________________ during the years of the 1980s and early 1990s with inflation rates often well above 100% per year.
a. deflation b. hyperinflation c. growth d. stagnation
Which of the following is a positive economic statement?
A) The temperature is too high today. B) The temperature is 105 degrees today. C) It is too hot to jog today. D) I enjoy summer evenings when it cools off.
Explain how agricultural price supports work and what the effects of the supports are
What will be an ideal response?
If banks do not have enough reserves to satisfy the reserve requirement, they can borrow additional reserves in the federal funds market.
Answer the following statement true (T) or false (F)