When economists speak of the CPI bias, they are referring to
A) the tendency for the CPI to overstate price changes.
B) the tendency for the CPI to understate price changes.
C) the tendency for the CPI to understate inflation.
D) errors in measuring the prices used in the CPI.
E) the tendency for government officials to impose their values on the data.
A
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Between 1960 and 2012, the share of federal spending allocated to national defense
a. declined sharply, while the share allocated to health care increased substantially. b. rose sharply, while the share allocated to health care declined substantially. c. was relatively constant, while the share allocated to health care declined modestly. d. declined modestly, while the share allocated to health care was relatively constant.
In 1995 ________, which was established in 1948, was replaced by ________
A) the GATT; the WTO B) the WTO; NAFTA C) the Smoot-Hawley Tariff; the GATT D) NAFTA; the Smoot-Hawley Tariff
Unexpected lower interest rates redistribute income from
A. Borrowers to lenders. B. Businesses to banks. C. Lenders to borrowers. D. Spenders to savers.
An increase in economic growth at home will increase imports to the United States.
Answer the following statement true (T) or false (F)