Which of the following statements regarding the consumer price index and the GDP deflator is correct?
a. The two price measures are always equal.
b. Divergence between the two price measures is the rule, not the exception.
c. Divergence between the two price measures is the exception, not the rule.
d. None of the above is correct.
c
You might also like to view...
Firms make a profit when they equate marginal revenue with marginal cost
Indicate whether the statement is true or false
The Federal Reserve System is under the strict control of
a. the executive branch b. the legislative branch c. the judicial branch d. the International Monetary Fund e. none of the above
Which of the following will be most likely to contribute to the growth of a less-developed country?
a. price controls that keep the cost of agricultural products low b. rapid population growth c. exchange rate controls and export restrictions d. secure property rights and low marginal tax rates
Easy monetary policy ________ interest rates which ________ the demand for a currency and ________ the market equilibrium value of the exchange rate.
A. increases; increases; increases B. decreases; decreases; decreases C. increases; decreases; increases D. increases; increases; decreases