Suppose the CPI does indeed overstate the inflation rate. When the CPI increases by 5% and household incomes increase by 5%, we should conclude that real incomes of households have:
A. increased more slowly than has inflation.
B. increased.
C. decreased.
D. stayed constant.
Answer: B
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Producer groups tend to lobby for
A) price floors. B) price ceilings. C) quantity quotas. D) taxes.
Which of the following statements is most correct?
a. The average education of women in the labor force is greater than the average education of men in the labor force. b. Women now constitute over 50% of the labor force of scientists. c. More women than men are currently enrolled in undergraduate and graduate programs. d. Women constitute less than 50% of the current undergraduates in the nation.
Which of these is a lagging economic indicator?
a. The unemployment rate b. Personal income c. Industrial production d. Total employment e. Fluctuations in stock prices
Shortages occur when
a. many people are unemployed. b. interest rates go up. c. people have trouble supplying the goods and services at current prices. d. the United States imports more than it exports.