Headline inflation is:
A. used only by the media for discussing inflation.
B. limited measure of inflation in the economy.
C. core inflation with the prices of food and gasoline added in.
D. not a generally accepted measure of inflation.
Answer: C
You might also like to view...
An economy is experiencing a recession and policy makers are considering using discretionary fiscal policy to eliminate the recessionary ga
What will be an ideal response?
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises and real GDP rises. b. The real risk-free interest rate falls, and real GDP rises. c. The real risk-free interest rate rises, and real GDP falls. d. The real risk-free interest rate and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Compare the real cost of commodity resources today (circa 2009) with their cost in the 1845–1850 period. What explains the change?
What will be an ideal response?
Any attempt to capture a consumer surplus, a producer surplus, or an economic profit is called
A) profit-maximizing. B) rent-seeking. C) price discriminating. D) efficiency gain.