The goal of the consumer price index is to measure changes in the
a. costs of production.
b. cost of living.
c. relative prices of consumer goods.
d. production of consumer goods.
b
You might also like to view...
Coordination of economic policies among nations is a prisoner's ________ because if all countries go it alone, they will choose to ________
A) dilemma; compete B) conundrum; cooperate C) sentence; compete D) dilemma; cooperate E) quandary; collude
If the import supply curve is horizontal at the world price:
A. a tariff will lower domestic aggregate surplus. B. a tariff will increase domestic aggregate surplus. C. a tariff will not change domestic aggregate surplus. D. a quota will increase domestic aggregate surplus.
When the Fed reduces the money supply, it will cause a decrease in aggregate demand because:
a. real rates will rise, lowering business investment and consumer spending. b. the dollar will depreciate on the foreign exchange market, leading to an increase in net exports. c. lower interest rates will cause the value of assets (for example, stocks) to rise. d. the national debt will increase, causing consumers to reduce their spending.
An elimination heuristic makes the choice on the basis of all the categories in which the events differ
Indicate whether the statement is true or false