In an attempt to separate the quality changes from price changes of a product over time, the BLS does a:
A. hedonic quality adjustment by estimating what the price of the item would be without the improved features.
B. hedonic quality adjustment by estimating the price of similar goods.
C. qualitative price change by estimating the price of all possible brands of the items.
D. qualitative market adjustment by estimating the price of the items in all markets.
A. hedonic quality adjustment by estimating what the price of the item would be without the improved features.
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PSD areas
a. must meet the same standards as do nonattainment areas b. face standards that are necessarily set at an efficient level c. are regions that meet or exceed national ambient air quality standards d. are likely associated with higher MSC than that of nonattainment areas
Use the following diagram for the market for money to answer the next question.
The vertical money supply curve Sm reflects the fact that
A. bond prices and interest rates are inversely related. B. the rate at which money is spent is zero. C. the stock of money is determined by the Federal Reserve System and does not change when the interest rate changes. D. lower interest rates result in lower opportunity costs of supplying money.
Which of the following statements is true of equilibrium?
A) Economic agents have an incentive to divert from equilibrium. B) Each economic agent can reach equilibrium irrespective of the actions of others. C) In equilibrium, the opportunity cost of the choices made by each economic agent is zero. D) In equilibrium, all economic agents are choosing the best feasible option simultaneously.
According to the new classical approach to the aggregate supply curve, the aggregate supply curve slopes upward because
A) increases in the price level result in lower real balances. B) higher current output results in higher desired investment. C) higher prices result in higher levels of spending as consumers attempt to stay ahead of inflation. D) businesses have difficulty in distinguishing relative price increases from general price increases.