As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative to other consumer goods. This situation contributed to which bias in the consumer price index?
a. Substitution bias
b. Indexing bias
c. Transportation bias
d. Quality bias
a
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A policy in which the money supply is kept growing at a constant rate regardless of the state of the economy is
A) a Taylor rule. B) a discretionary policy. C) a policy rule advocated by monetarists. D) advocated by activists.
The postwar years:
a. ushered in what has been described as an unthinking materialist culture. b. ushered in what has been described as a consumer-oriented society that represented the fulfillment of the American dream. c. featured an unusual deviation from the long-term trend toward smaller families. d. All of the above are correct. e. Only a and b are correct.
We should expect the consumption function to shift downward if
a. real interest rates rise. b. price levels fall. c. consumers become more optimistic about future incomes. d. consumers become more pessimistic about future incomes.
Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is
a. True b. False Indicate whether the statement is true or false