Which of the following would understate the consumer price index?
a. Substitution bias.
b. Deteriorating quality of products.
c. Improving quality of products.
d. Law of demand bias.
c
You might also like to view...
The most important component of the Economic Recovery Act passed by the Bush Administration was ________
A) the creation of the Federal Reserve discount window B) the establishment of the Troubled Asset Relief Program (TARP) C) the decrease in taxes for the wealthiest one percent of all Americans D) the creation of the Federal Reserve
An increase in the money supply is represented by a(n):
a. rightward shift of the downward-sloping money supply curve. b. upward shift of the money supply curve. c. rightward shift of the money supply curve. d. increase in the rate of interest.
In a perfectly competitive industry, influence over price is exerted by: a. individual sellers
b. individual buyers. c. the largest firms. d. the forces of market supply and demand.
Which of the following is a true statement?
A. Under normal conditions, there is a short-run trade-off between inflation and unemployment. B. There is a long-run trade-off between inflation and unemployment. C. The short-run Phillips Curve is vertical. D. The long-run Phillips Curve is horizontal.