In calculating the Consumer Price Index
A. the price of each item is allowed to change between the base period and current year but the quantity is held constant.
B. the quantity of each item is allowed to change between the base period and current year but the price is held constant.
C. both the price and quantity of each item is allowed to change between the base period and current year.
D. neither price nor quantity of each item is allowed to change between the base period and current year.
A. the price of each item is allowed to change between the base period and current year but the quantity is held constant.
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The food processing industry in Richland accounts for 20% of its GDP
Which of the following will happen if firms in this industry become pessimistic about the future demand for their products? Assume that consumption and government expenditure remains unchanged. A) Richland's unemployment rate will fall. B) Richland's interest rate will increase. C) Richland's inflation rate will increase. D) Richland's GDP will fall.
In what ways is GDP a misleading measure of economic performance? Consider what components are not included on GDP.
What will be an ideal response?
A reduction in the minimum wage will tend to cause which of the following?
A) a reduction in poverty B) an increase in the number of workers employed C) an increase in the quantity supplied of labor D) a reduction in the quantity demanded of labor
Arnold's nominal wage increased by 3%, and the prices of goods that Arnold buys increased by 5%. Arnold's real wage has
A. increased. B. decreased. C. remained constant. D. changed by 8%, but the direction of the change is ambiguous.