The most widely used measure of inflation is based on which of the following price indices?
A) the producer price index
B) the consumer price index
C) the GDP deflator
D) the wholesale price index
Answer: B
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Inflation targeting involves public disclosure of each of the following, except ________
A) policy makers' plans and objectives B) explanation of discrepancies between target inflation and actual inflation C) the federal government debt ceiling D) projections of macroeconomic conditions
The imposition of a binding price ceiling on a market causes quantity demanded to be a. greater than quantity supplied. b. less than quantity supplied
c. equal to quantity supplied. d. Both (a) and (b) are possible.
Which of the following is a valid counterargument against using tariffs to protect high wages from cheap foreign labor?
A. The benefits of such tariff policy will go to consumers, not workers B. The benefits of such tariff policy will go to businesses, not workers C. Wage rates in a nation are largely determined by productivity, not trade tariffs D. The economy may become overheated, thus increasing inflation
Calculate MPS.
