The CPI is calculated by
A. summing the prices of all consumption goods in the economy.
B. multiplying the rate of inflation in the economy times the unemployment rate.
C. surveying a group of consumers and asking them about their monthly expenditures on necessities.
D. pricing a basket of goods and services purchased by a typical urban household.
D. pricing a basket of goods and services purchased by a typical urban household.
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Under oligopoly, firms' pricing policies are ________ and, under monopolistic competition, they are ________
A) interdependent; independent B) independent; interdependent C) cooperative; uncooperative D) uncooperative; cooperative E) profit maximizing; revenue maximizing
If we consider the equation PAE = A + bY the part of the equation that relates to autonomous sources of spending is:
A. b B. Y C. A D. PAE
The GDP of Country A is equal to $124.5 billion, and the consumption expenditure in the economy is $85.9 billion. The government of Country A charges a flat tax of 20 percent. The government also spends $4.5 billion per year in the form of transfer payments. The disposable income of the country is equal to: a. $99.6 billion
b. $104.1 billion. c. $124.5 billion. d. $129.0 billion.
What does the upper half of the diagram represent—the part marked 1?
a. the product market b. the factor market c. the government flow of resources d. the flow of income