Asset prices in an economy are likely to fall if ________
A) firms' revenues rise B) labor supply falls
C) labor demand increases D) investment falls
D
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The CPI bias was estimated by the Congressional Advisory Commission on the Consumer Price Index as
A) understating the actual inflation rate by about 5 percentage points a year. B) understating the actual inflation rate by more than 5 percentage points a year. C) overstating the actual inflation rate by about 1 percentage point a year. D) overstating the actual inflation rate by more than 5 percentage points a year. E) understating the actual inflation rate by about 1 percentage point a year.
A scatterplot allows us
A) to mark peaks and troughs. B) to determine whether a series leads or lags. C) to see the comovement between two time series. D) to determine how persistent a series is.
To reduce aggregate demand, the government may reduce _____ or increase _____
Fill in the blank(s) with correct word
Suppose that the United States does 1/2 of its trade with Canada, 1/4 with the United Kingdom, and 1/4 with Mexico. If the dollar real exchange rate rises by 10°/o with Canada, rises by 20% for the United Kingdom, and falls by 10% for Mexico, what is the percentage change in the real effective exchange rate?
a. 11.5% b. 10% c. 7.5% d. -2.5%