The inflation rate measures the
A) average price of the goods and services consumed by urban consumers.
B) percentage change in the CPI from one year to the next year.
C) cost of the CPI market basket at current period prices divided by the cost of the CPI market basket at base period prices.
D) percentage change in the quantity of goods and services consumed by urban consumers.
E) cost of the CPI market basket at base period prices divided by the cost of the CPI market basket at current period prices.
B
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Assuming that clothing is a normal good, an increase in consumer income, other things being equal, would:
a. increase the demand for clothing. b. decrease the demand for clothing. c. increase the quantity of clothing demanded. d. decrease the quantity of clothing demanded
If the required reserve ratio is a uniform 25 percent on all deposits, the money multiplier will be:
a. 4.00. b. 2.50. c. 0.40. d. 0.25.
The size of changes in output and price level, and how the change in equilibrium relates to potential GDP, depends on whether the shift in the _____ curve is happening in the relatively flat or relatively steep portion of the _____ curve.
a. AD; AD b. AS; AS c. AD; AS d. AS; AD
Which of the following did NOT happen during the late 19th century in the U.S.?
a. Falling crop prices reduced farmers' incomes b. From 1880 to 1896, the price level fell by 23 percent c. Farmers lobbied for government policies to reduce inflation d. Farmers had reduced ability to pay off debts