The CPI for 2008 is computed by dividing the price of the basket of goods and services in 2008 by the price of the basket of goods and services in the base year, then multiplying by 100
a. True
b. False
Indicate whether the statement is true or false
True
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Compare and contrast the arguments favoring active versus passive policy making
What will be an ideal response?
Some resources are private and others are common. Define a common resource, explain the definition, and provide an example of a private resource and a common resource
What will be an ideal response?
Long-run equilibrium in the goods and services market requires that
a. aggregate supply equals aggregate demand and that decision makers correctly anticipate the level of prices. b. the unemployment rate is zero. c. prices are neither increasing nor decreasing. d. aggregate supply be larger than aggregate demand.
GDP is defined as the dollar value of __________ in a given year.
A. all of the inputs used in the economy B. the total output of the economy C. the total purchases made in the economy D. all intermediate and final goods produced in the economy