The GDP deflator is a broader measure of the price level than the CPI because

A) it covers sales tax.
B) it covers rents.
C) it covers investment.
D) it factors out fluctuations in seasonal items.


C

Economics

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The quantity theory of money is a proposition about

A) the nominal interest rate and the quantity of money demanded. B) the Fed's methods used to change the quantity of money. C) nominal and real interest rates. D) the relationship between financial assets and currency demanded. E) the relationship between a change in the quantity of money and the price level.

Economics

An objective analysis of "what is" in the economy is referred to as

A) positive economics. B) normative economics. C) command economics. D) implicit economics.

Economics

Which of the following is true of the gravity model?

A. The gravity model states that the trade flows between two countries are proportional to the countries' land masses. B. The gravity model states that the trade flows between two countries are directly proportional to their gross domestic product (GDP). C. The gravity model states that trade flows between a developing and a developed nation are usually unidirectional. D. The gravity model emphasizes the role of the government to generate adequate gains from trade.

Economics

As competitors enter a monopolistically competitive industry, the incumbent firms demand curves shift

a. To the left and become less elastic
b. To the right and becomes less elastic
c. To the left and becomes more elastic
d. To the right and becomes more elastic

Economics