An increase in the quality of items included in the Consumer Price Index would cause the index to
A. overstate the true amount of unemployment.
B. overstate the true amount of inflation.
C. understate the true amount of unemployment.
D. understate the true amount of inflation.
B. overstate the true amount of inflation.
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Figure 4.3 illustrates the demand for tacos. Assume tacos are an inferior good. An increase in income would bring about a movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
What is the value of the intra-industry trade index for an industry in which exports are $200 million and imports are $20 million?
a. 2.00 b. (200 + 20)/20 = 11.00 c. 20/[1/2 × (200 + 20)] = 0.18 d. (200 - 20)/200 = 0.90
Draw a graph of the firm's demand, marginal revenue, marginal cost, and average total cost curves.
The market supply curve indicates the total quantity all producers in a competitive market would produce at each price,
A. allowing all supply shifters to vary. B. holding all supply shifters fixed. C. holding only input price fixed. D. allowing input price to vary.