If the CPI doesn't measure product quality improvements, the CPI tends to
A. Overstate the inflation rate.
B. Understate economic growth.
C. Be artificially low.
D. Understate the inflation rate.
Answer: A
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The demand curve shifts rightward from D0 to D1 when the U.S. interest rate ________ and foreign interest rates are unchanged. The demand curve shifts rightward from D0 to D1 when the expected future exchange rate ________
A) falls; rises B) rises; rises C) falls; falls D) rises; falls E) None of the above answers is correct because the factors mentioned lead to movements along the demand curve and not to shifts of the demand curve.
Which of the following is not a determinant of demand?
a. production costs b. consumer expectations c. prices of related goods d. tastes and preferences of consumers
Production inefficiency is more likely to occur when the principal has more information about work performance than the agent does
Indicate whether the statement is true or false
An example of structural unemployment is a(n):
a. textile worker who quits one job and waits for the new job to begin. b. engineer permanently laid off due to advances in technology. c. computer programmer who becomes rich and leaves the labor force. d. All of these.