What type of CPI bias occurs when consumers switch from buying groceries at their local supermarket to buying them at a discount warehouse like Costco?
a. new outlet
b. new product
c. quality
d. substitution
a. new outlet
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Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. If there is a drought in the wapanzo bean growing region then supply will ________ and demand will ________
A) become case A; become case 1 B) become case A; stay at case 2 C) stay at case B; become case 3 D) stay at case B; become case 1
In general, the current stock of pollutants (St) may be modeled as St = Et + (1 - d)St-1 where d is the ________ and Et is the ________
A) social discount rate, previous stock level B) social discount rate, current emissions C) stock dissipation rate, previous stock level D) stock dissipation rate, current emissions
What do Keynesian economists believe that the expenditure multiplier is?
a. Less than one b. Equal to one c. Greater than one d. Can be greater or less than one
When inflation is not a surprise:
A) the Phillips curve is downward sloping. B) activist monetary policy has a real effect on the economy. C) the economy is not at full-employment output. D) it does not affect the unemployment rate. E) the economy is expanding.