Suppose people on diets buy the bulk of the ground chicken and ground turkey sold in the U.S., and they use either interchangeably, as a substitute in recipes for ground beef. If the price of ground turkey rises and the price of ground chicken does not, then CPI will
A. overstate inflation because of the issue of substitution.
B. understate inflation because of the issue of substitution.
C. overstating inflation because of the issue of missing "where people shop."
D. understating inflation because of the issue of missing "where people shop."
Answer: A
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The gross domestic product of a small country is $4,150,000 and the size of its employed labor force is 5,000. The income per worker of the country is ________
A) $620 B) $213 C) $830 D) $445
On any given day, ________ changes to achieve equilibrium in the money market
A) the nominal interest rate B) the price level C) the real interest rate D) the inflation rate E) real GDP
Other things remaining the same, which of the following is likely to cause a left shift in the supply curve for labor?
A) A decrease in population B) An increase in population C) A decrease in the demand for the final product that the labor is used to produce D) An increase in the demand for the final product that the labor is used to produce
In the above figure, when the efficient quantity is produced the marginal social benefit of the last magazine is
A) $1. B) $3. C) $5. D) some amount not given in the above three answers.