Suppose a price index is formed to measure changes in the price level between 1999 to 2005. A price index based on changes in the cost of the basket of goods purchased by the typical consumer in 2005 is called a
a. relative price index.
b. consumer price index.
c. Laspeyres price index.
d. Paasche price index.
d. Paasche price index.
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Based on the table "Real and Nominal GDP," if year one is the base year, then the inflation rate in year three is ________
A) 14.6% B) 9.5% C) 9.9% D) 11.5% E) 16.5%
The following is not a consequence of Xt and Yt being cointegrated:
A) if Xt and Yt are both I(1), then for some ?, Yt – ? Xt is I(0). B) Xt and Yt have the same stochastic trend. C) in the expression Yt – ? Xt , ? is called the cointegrating coefficient. D) if Xt and Yt are cointegrated then integrating one of the variables gives you the same result as integrating the other.
The unit of account function of money refers to the
A) fact that money and income are the same thing. B) common denominator of measurement provided by money. C) characteristic that all money is intrinsically valuable. D) all of the above
Which of the following is not true about the demand for factors of production?
A. It is a function of diminishing marginal physical product. B. It depends on the firm's expected sales and output. C. It is derived from the demand for the goods and services the firm produces. D. It is a function of the elasticity of supply.