Changes in the consumer price index are useful in predicting changes in the producer price index
a. True
b. False
Indicate whether the statement is true or false
False
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Comparing the short-run Phillips curve and the long-run Phillips curve, we see that there is
A) no relationship between the two curves. B) no tradeoff in either curve. C) a tradeoff in both curves. D) only a long-run tradeoff between inflation and unemployment but not a short-run tradeoff. E) only a short-run tradeoff between inflation and unemployment but not a long-run tradeoff.
Suppose the demand for pizza in a small isolated town is p = 10 - Q. There are only two firms, A and B, and each has a cost function TC = 2 + Q
Compare the firms' profits if they behave as Cournot duopolists with their profits if they form a cartel and share the market.
Suppose a Dell computer that sells for $2,000 in the U.S. is exported to Canada, where it sells for 2,500 Canadian dollars. Further assume that 1.5 Canadian dollars trade for one U.S. dollar in the foreign exchange market. According to the purchasing power parity theory and the price data for this computer, is the Canadian dollar more likely undervalued, properly valued, or overvalued relative to
the U.S. dollar? a. Undervalued b. Properly valued c. Overvalued d. Cannot be determined from the information given
In a graph with disposable income on the horizontal axis and consumption on the vertical axis, the intersection of the 45-degree line with the
A. Full-employment output indicates equilibrium (macro). B. Aggregate spending curve indicates full employment. C. Aggregate demand curve indicates equilibrium. D. Consumption function indicates zero saving.