The Fed uses a "core" price index, one that excludes food and energy prices to measure inflation. It does so because
A) food and energy prices have wide swings that are not related to the causes of general inflation.
B) food and energy have inelastic demand curves and consumers will buy them regardless of their price.
C) food and energy prices do not change all that much during the short run, so are irrelevant to the calculation of inflation.
D) it wants to avoid the blame for high gasoline prices causing inflation.
A
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If a consumer purchases more of good X and good Y after her income increases, then neither good X nor good Y is an inferior good for her
a. True b. False Indicate whether the statement is true or false
Regulations to prevent Usury are meant to
A. limit consumption of depletable resources. B. control rents from increasing. C. cap the cost of borrowing. D. provide a living wage.
If taxpayers pay a smaller fraction of their income in taxes as their incomes rise, the tax is ________ and if taxpayers pay a larger fraction of their income in taxes as their income rise, the tax is ________.
A. progressive; regressive B. regressive; progressive C. proportional; progressive D. regressive; proportional
A new fertilizer that is better suited to a nation's topography and climate is an example of a technological advance that is:
A. Capital-using B. Capital-saving C. Capital-intensive D. An in-kind investment