Which of the following is a correct statement?
A) Inflation is measured as the percentage change in the CPI.
B) The CPI is a widely used measure of the inflation rate.
C) Real GDP is our best measure of economic growth.
D) The PPI measures inflation as experienced by producers.
Answer: A
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To have more consumer goods in the future, we must
A) produce more capital goods today. B) lower current income. C) get government involved in the production process. D) stop producing all goods today.
If the population older than 16 years of age equals 150 million, the labor force equals 110 million, and the total number of persons employed equals 98 million, then the unemployment rate is: a. 8 percent
b. 38 percent. c. 10.9 percent. d. 28 percent.
If the value of the domestic currency depreciates:
a. Aggregate demand rises, but aggregate supply does not change. b. Aggregate demand falls and aggregate supply rises. c. Aggregate demand rises and aggregate supply rises. d. Neither aggregate demand nor aggregate supply change. e. Aggregate demand rises and aggregate supply falls.
If the market demand curve does not capture all of the benefits to society of buying an additional unit of good, then:
A. the allocation of resources will be socially optimal. B. the market equilibrium will not be efficient. C. the market equilibrium will be socially optimal. D. the market will not be in equilibrium.