To measure core inflation, the BLS removes goods that:
A. have historically volatile prices.
B. are considered necessities.
C. are luxury goods.
D. are durable and hold a constant value.
A. have historically volatile prices.
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The velocity of circulation grows at 1 percent and real GDP grows at 3 percent. If the quantity of money grows at 4 percent, the inflation rate is
A) 8 percent. B) 4 percent. C) zero. D) 2 percent. E) 10 percent.
Over the last 50 years, the poor have:
A. become richer at a slower rate than the rich, and so inequality has grown. B. become richer at a slower rate than the rich, and so inequality has decreased. C. become richer at the same rate as the rich, and so inequality has stayed the same. D. become poorer, while the rich have become richer, and so inequality has grown.
Some economists say that "full employment" exists in an economy when:
a. cyclical unemployment is 2 percent. b. cyclical unemployment is 4 to 6 percent. c. frictional unemployment is zero. d. the unemployment rate is 4 to 7 percent. e. the natural unemployment rate is zero.
One of the 20th century's worst episodes of inflation occurred in
a. the United States in the 1960s. b. Italy in the 1950s. c. Russia in the 1930s. d. Germany in the 1920s.