The CPI is based on an:
A. aggregated average meant to reflect the statistical average consumption.
B. average of the goods and services purchased by "urban consumers."
C. average of the goods and services purchased by "rural consumers."
D. average of the two baskets of goods and services purchased both by "urban" and by "rural" consumers.
Answer: B
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What is the best measure of the value of output of an economy?
A) NNP B) GNP C) GDP D) the GDP deflator
Commodity money is a good
A) that is designated as money by law. B) used as money that has no intrinsic value. C) used as money that has no secondary use. D) used as money that also has value independent of its use as money.
"The slope of the demand curve gives the elasticity of demand." Do you agree or disagree? Why?
What will be an ideal response?
Suppose that Argentina's dollar-denominated external assets and liabilities are $10 billion and $100 billion, respectively, and its Argentine peso-denominated external assets and liabilities are each 50 billion pesos (P). Suppose further that Argentina fixes its exchange rate at P1 = $US1. Suppose that Argentina changes its exchange rate to P3 = $US1. Now what is the peso value of Argentina's total external wealth?
A) -270 billion pesos B) -150 billion pesos C) 0 D) -210 billion pesos