The consumer price index and the GDP deflator are two alternative measures of the overall price level. Which of the following statements about the two measures is correct?
a. The CPI involves a base year; the GDP deflator does not involve a base year.
b. The CPI can be used to compute the inflation rate; the GDP deflator cannot be used to compute the inflation rate.
c. The CPI reflects the prices of goods and services produced domestically; the GDP deflator reflects the prices of all goods and services bought by consumers.
d. The CPI reflects a fixed basket of goods and services; the GDP deflator reflects current production of goods and services.
d
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When expectations cause people to discriminate against a certain group, it is referred to as:
A) preferential bias. B) implicit discrimination. C) statistical discrimination. D) taste-based discrimination.
A rising GDP causes __________ the money demand curve
A) downward movement along B) upward movement along C) a rightward shift of D) a leftward shift of
Under a pure system of laissez faire, the government would not do which of the following?
a. prosecute criminals b. provide national defense c. punish those involved in conspiracies to fix prices d. establish minimum wages
Cartels that set prices and allocate sales among their member firms were commonly referred to in the late 19th century as
A. conglomerates. B. trusts. C. monopolies. D. multinationals.