What is the best definition of “inflationary bias” in this context?
Read the following passage and then answer the question that follows.
Since 1995, the Bureau of Labor Statistics (BLS) has been eliminating or reducing
biases in the Consumer Price Index (CPI). Many economists believe that the BLS
improvements have cut inflationary bias in half, and it is now estimated to be less
than 1 percentage point per year.
a. the tendency to believe that inflation is beneficial to the economy
b. the tendency to promote policies that cause a positive inflation rate
c. the tendency to overstate the rate of inflation
d. the tendency of the members of an economy to push prices up
c. the tendency to overstate the rate of inflation
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In a floating exchange rate system, an increase in the value of the exchange rate could be caused by
a. an increase in taxes. b. an decrease in government spending. c. a decrease in the domestic money supply. d. a decrease in exports.
State and local governments were smaller than the federal government in 1900
a. True b. False
The inflation and unemployment rates experienced during the 1960s seemed to indicate that the economy was operating on the vertical segment of the aggregate supply curve
Indicate whether the statement is true or false
Angie is debating whether to take a job as a professional therapist or a florist. She will earn $40,000 a year as a therapist or $25,000 a year as a florist. If she chooses to be a therapist, the economic rent is
A) $40,000. B) $25,000. C) $15,000. D) unable to determine.