The inflation rate is calculated
a. by determining the change in the price index from the preceding period.
b. by adding up the price increases of all goods and services.
c. by computing a simple average of the price increases for all goods and services.
d. by determining the percentage increase in the price index from the preceding period.
d
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Why is it customary to report price elasticity of demand in absolute value terms while cross elasticities and income elasticities are reported with their sign attached?
What will be an ideal response?
A tractor used to prepare land for planting is called
A) land. B) labor. C) physical capital. D) human capital.
Which of the following statements best describes Keynes’ argument about the markets and unemployment?
a. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, individual markets may be doing a perfectly good job of allocating the efforts of the nine million workers—the problem is that insufficient aggregate demand exists to support jobs for all 10 million. b. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, the problem is that individual markets are not doing a good job of allocating the efforts of the 10 million workers. c. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, sufficient aggregate demand exists to support jobs for all 10 million. d. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, individual markets are not doing a good job of allocating the efforts of the 10 million workers because sufficient aggregate demand exists to support jobs for all 10 million.
Which of the following lists correctly identifies the four expenditure categories of GDP?
a. consumption, government purchases, investment, net-exports b. consumption, investment, depreciation, net-exports c. consumption, saving, investment, depreciation, d. consumption, government purchases, investment, savings