The CPI differs from the GDP deflator in that
a. the CPI is a price index, while the GDP deflator is an inflation index.
b. substitution bias is not a problem with the CPI, but it is a problem with the GDP deflator.
c. increases in the prices of foreign produced goods that are sold to U.S. consumers show up in the CPI but not in the GDP deflator.
d. increases in the prices of domestically produced goods that are sold to the U.S. government show up in the CPI but not in the GDP deflator.
c
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A change that increases the expected profit from holding a unit of product in inventory, ________ the expected marginal revenue curve and shifts it to the ________.
A) increases; left B) decreases; left C) decreases; right D) increases; right
If Q = K2L2 the MPK is
a. constant b. diminishing c. increasing
A business cycle is the
When a corporation participates in more than one successive stage in a multi-stage production process, it is said to be:
A. functionally organized. B. engaged in preliminary contracts. C. vertically integrated. D. completely outsourced.