The basket of goods in the consumer price index changes
a. occasionally, as does the group of goods used to compute the GDP deflator.
b. automatically, as does the group of goods used to compute the GDP deflator.
c. occasionally, whereas the group of goods used to compute the GDP deflator changes automatically.
d. automatically, whereas the group of goods used to compute the GDP deflator changes occasionally.
c
You might also like to view...
In Chapter 11, depreciation is assumed to be
A) a fixed proportion of real GDP. B) a fixed proportion of the capital stock. C) a fixed absolute amount. D) zero. E) a fixed proportion of the capital-labor ratio.
Refer to Scenario 13.16. If Gooi can move first, and Ici wants to realize the ($150, $300 ) payoff,
A) all it has to do is threaten to buy yogurt machines, no matter what Gooi does. B) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than $50. C) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than $150. D) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than $300. E) it has to move before Gooi; there is no other way.
The country of Wiknam has net capital outflow of $1,000 . government purchases of $5,000 and consumption of $20,000 . Which of the following is correct?
a. If its domestic investment is $1,000 . its GDP is $26,000. b. If its domestic investment is $2,000 . its GDP is $28,000. c. If its domestic investment is $5,000 . its GDP is $29,000. d. None of the above are correct.
The natural rate of unemployment
A. exists only during periods of recession or depression in the economy. B. prevails in long-run macroeconomic equilibrium, when all workers and employers have fully adjusted to any changes in the economy. C. prevails in the short-run macroeconomic equilibrium, before workers and employers have had a chance to adjust to an economic shock. D. exists due to welfare and unemployment benefits that reduce potential workers' incentives to find work.