Which of the following is a bias in the CPI?
i. new goods bias
ii. index change bias
iii. commodity substitution bias
A) i only
B) ii only
C) iii only
D) i and iii
E) i, ii, and iii
D
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The Fed's policy is determined by the
A) Federal Open Market Committee. B) Executive Council to the Governor. C) Regional Federal Reserve Banks. D) Board of Governors. E) Federal Monetary Policy Committee.
If the government purchases multiplier equals 2, and real GDP is $14 trillion with potential real GDP $14.5 trillion, then government purchases would need to increase by ________ to restore the economy to potential real GDP
A) $7.25 trillion B) $1 trillion C) $500 billion D) $250 billion
The international capital market is:
A) the international currency exchange. B) a market in which capital assets are exchanged for services. C) the market that is subject to intense regulation and must file a report to the Basel committee on a biannual basis. D) not really a single market, but a group of closely interconnected markets in which asset exchanges with some international dimension take place. E) an organization of fiscal policies that dictate international trade.
Total cost divided by the total number of inputs is called:
a. marginal cost b. average cost c. total cost d. variable cost