The CPI measures the average prices paid by __________ for _________
A. urban consumers; a fixed basket of consumption goods and services
B. urban consumers; the average basket of goods and services they buy
C. all consumers; housing, transportation, and food
D. everyone who earns an income; the necessities of life
A Answer A is the definition of the CPI.
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Wait unemployment and search unemployment are both types of
A. structural unemployment. B. cyclical unemployment. C. frictional unemployment. D. hidden unemployment.
During 1990, a Hershey candy bar cost $.85. By 2007, the same Hershey candy bar cost $1.25. If the CPI was 130.7 in 1990 and 180.5 in 2007, the price of the 1990 Hershey candy bar in 2007 prices is
A) greater than the price of the 2007 Hershey candy bar. B) less than the price of the 2007 Hershey candy bar. C) equivalent to the price of the 2007 Hershey candy bar. D) perhaps greater than, perhaps less, or perhaps the same depending on whether the CPI in 2007 has been adjusted to reflect 2007 prices. E) not able to be determined given the information in the question.
The public often overestimates the negative effects of inflation due to a focus on nominal rates of interest.
Answer the following statement true (T) or false (F)
A ________ demand curve for shampoo would be caused by a change in the price of shampoo
A) rightward shift of the B) leftward shift of the C) movement along the D) positively sloped