Which of the following statements is correct?
a. The consumer price index is a measure of the overall level of prices, whereas the GDP deflator is not a measure of the overall level of prices.
b. If, in the year 2011, the consumer price index has a value of 123.50, then the inflation rate for 2011 must be 23.50 percent.
c. Compared to the GDP deflator, the consumer price index is the more common gauge of inflation.
d. The consumer price index and the GDP deflator reflect the goods and services bought by consumers equally well.
c
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When money is accepted as payment in a market transaction, it is functioning as a
A) store of value. B) unit of accounting. C) medium of exchange. D) unit of investment.
Refer to Table 12-4. If the market price is $45, the firm
A) will earn profit of $1,040. B) will suffer a loss of $200. C) earn a profit of $3,600. D) will break even.
Which of the following would not lead to a change in demand for coffee?
a. a change in the price of coffee b. a change in consumer preferences for coffee c. a change in the price of tea d. a change in consumers’ disposable incomes
"Certified shade-grown, organic coffee" is an example of requiring home standards in a foreign market instead of trade barriers
Indicate whether the statement is true or false