One problem with keeping the CPI basket fixed is it:
A. doesn't accurately isolate price changes from behavior changes.
B. can't properly predict when prices will change.
C. doesn't allow for changes in people's preferences over time.
D. doesn't really capture what a typical household may purchase in a base year.
Answer: C
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For a given price level, a downward shift of the expenditures schedule corresponds to an
a. inward shift of the aggregate demand curve. b. outward shift of the aggregate demand curve. c. outward shift of the aggregate supply curve. d. inward shift of the aggregate supply curve.
Good governance is:
A. not important to either economic growth or development. B. important to economic growth, but not to economic development. C. important to economic development, but not to economic growth. D. important to both economic growth and development.
Because of the productivity slowdown in the United States from the mid-1970s through the mid-1990s
A) the standard of living did not change. B) the standard of living increased in the United States. C) real GDP per capita grew more rapidly. D) real GDP per capita grew more slowly.
Which of the following would increase the U.S. demand for foreign currency?
a. an increase in the U.S. demand for foreign goods b. an increase in incomes abroad c. a decrease in U.S. incomes d. a decrease in the U.S. demand for foreign goods e. an increase in U.S. real interest rates