The calculators of a price index use a “bundle” or “basket” of representative goods and services. What tradeoff are they making in this calculation?
a. ethics for monetary gain
b. logic for relevance
c. accuracy for convenience
d. tradition for innovation
c. accuracy for convenience
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound, the total imports of cherries to the United States from other nations equals
A) 200,000 pounds. B) 400,000 pounds. C) 600,000 pounds. D) 800,000 pounds. E) 0 pounds.
When a rich nation buys a product made in a poor nation, in the poor nation the demand for labor ________ and the wage rate ________
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls
Which approach to calculating GDP is computed using compensation of employees, rental income, profits, net interest, indirect business taxes, and depreciation?
a. The expenditure approach. b. The income approach. c. The product-market approach. d. The circular-flow approach.