Suppose the base year for a Lespeyres index is 2001. The value of the index is 1.3 in 2004 and 1.6 in 2006. By how much did the cost of the bundle increase between 2004 and 2006?
A. 0.3%
B. 23%
C. 0.23%
D. 60%
B. 23%
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Eric lost his job because a recession caused his employer's sales to fall. This is an example of:
a. involuntary unemployment. b. frictional unemployment. c. structural unemployment. d. cyclical unemployment.
External debt is that portion of the national debt
a. held by private investors. b. held by the Federal Reserve. c. that the United States does not intend to repay. d. held by foreigners.
The 12 regional Federal Reserve Banks
A. are not allowed to make loans to banks in their districts. B. regulate banks in their districts. C. have more voting members on the FOMC than does the Board of Governors. D. are each headed by a member of the Board of Governors.
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.