Using the CPI, the rate of inflation can be calculated by
A). 100 x [CPI(current year) - CPI(prior year)]
B) [CPI(current year) - CPI(prior year)] x CPI(prior year)
C) 100 x [CPI(current year) - CPI(prior year] / CPI(prior year)
D) CPI (current year) / CPI (prior year)
Answer: C) 100 x [CPI(current year) - CPI(prior year] / CPI(prior year)
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Which of the following is NOT a basis for the Taylor-rule guideline for how the Federal Reserve should set its target value for the federal funds rate?
A) the current deviation of the actual inflation rate from the Fed's inflation objective B) the gap between actual real GDP and a measure of potential real GDP C) an estimated long-run real interest rate D) the present deviation of the actual unemployment rate from the Fed's unemployment objective
In the Baumol model, a change in fixed costs will
A) increase total quantity sold. B) have no effect on total quantity sold. C) decrease total quantity sold. D) have an effect on total quantity sold.
The aggregate supply curve is
a. the sum of all individual firms' supply curves. b. vertical in the short run. c. downward sloping in the short run. d. upward sloping in the short run. e. upward sloping both in the short run and the long run.
The __________ of the mentally ill over the last two and a half decades, without the promised halfway houses to treat and shelter them has added to the ________________.
Fill in the blank(s) with the appropriate word(s).