The consumer price index and the GDP deflator are two alternative measures of the overall price level. Which of the following statements about the two measures is correct?
a. The two measures are constructed differently, but they always indicate the same inflation rate.
b. The substitution bias applies equally to both measures.
c. A change in the price of Korean televisions is reflected in the U.S. consumer price index but not in the U.S. GDP deflator.
d. All of the above are correct.
c
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As recessions begin, income
a. and unemployment both fall. b. falls and unemployment rises. c. and unemployment both rise. d. rises and unemployment falls.
Average variable cost can be calculated using any of the formulas below except
A) ?(TC - FC)/?Q. B) TVC/Q. C) (TC - FC)/Q. D) (TC/Q) - AFC.
Overseas investments by U.S. citizens show up in the U.S. balance of payments as
a. credit items. b. debit items. c. current account items. d. investment income.
Which of the following is true?
A. The completion of the transcontinental railroad system in the 1880s eventually made the United States the world's first mass market. B. Southern manufacturers benefited from high protective tariffs of the 19th century that kept out cheaper Japanese manufactured goods. C. The canal system linking east-coast rivers with the Great Lakes in the 1820s created an "American economy" rather than just a series of regional economies located in one country. D. Agricultural inventions such as John Deere's steel plows did little to improve farm productivity.