If we compare the last 30 years of inflation as recorded by the CPI and the PCE price index, we find that the
A) two measures fluctuate together.
B) CPI inflation rate has consistently been at least 5 percentage points above the PCE price index inflation rate.
C) PCE price index inflation rate has consistently been at least 5 percentage points above the CPI inflation rate.
D) two measures give very different inflation rates for most years.
E) the CPI inflation rate was always positive, but the PCE price index inflation rate was frequently negative.
A
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Indifference curves
a. are nonintersecting. b. are contour lines of a utility function. c. are negatively sloped. d. All of the above.
If banks and speculators in the U.S. decided to exchange U.S. dollars for the foreign currencies of other countries, but foreigners do not desire to increase their holdings of U.S. dollars, then U.S. net exports would
a. rise and aggregate demand would shift left. b. rise and aggregate demand would shift right. c. fall and aggregate demand would shift left. d. fall and aggregate demand would shift right.
Exhibit 14-8 Aggregate demand and supply
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In Exhibit 14-8, if aggregate demand shifts from AD1 to AD2,
A. real GDP will increase from $3.0 to $7.0, and the price level will remain the same. B. real GDP will increase from $3.0 to $4.0, and the price level will remain the same. C. real GDP and the price level will both remain the same. D. real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140.
Someone who has decided that her time is more valuable in nonmarket activities than it is when spent working is considered unemployed.
Answer the following statement true (T) or false (F)