The consumer price index reflects
A. the changes in the prices of goods and services typically purchased by consumers.
B. the average level of prices for intermediate goods and services purchased by business.
C. the median price of a typical single family home.
D. prices of all goods and services computed from the ratio of nominal GDP to real GDP.
Ans: A. the changes in the prices of goods and services typically purchased by consumers.
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
A perfectly competitive producer is
A. a "price maker." B. a "price taker." C. both a "price maker" and a "price taker." D. neither a "price maker" nor a "price taker."
In the above figure, after the second worker is hired, the marginal product of labor is
A) increasing. B) diminishing. C) constant. D) zero.
A tariff differs from a quota in that a tariff is:
a. levied on imports, whereas a quota is imposed on exports. b. levied on exports, whereas a quota is imposed on imports. c. a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported. d. a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.