The first step in measuring the CPI is to
A) select the market basket.
B) conduct a monthly survey.
C) collect prices for the basket of goods and services.
D) interview businesses.
A
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Suppose the marginal propensity to consume is 0.63, the marginal propensity to import equals 0.08, and personal income taxes amount to 9 percent of GDP. The spending multiplier for this economy is equal to _____
a. 0.54 b. 0.80 c. 1.25 d. 1.41 e. 1.85
We all behave as speculators in our economic transactions
A) because everyone likes to gamble. B) because we all act in the hope of benefits from a correct anticipation of future events. C) unless we never buy on credit. D) unless we use the services of middlemen.
Refer to above figure. Would you expect to find that the real wages become equalized in both countries? Explain the reason for any differences you note
What will be an ideal response?
The expenditure lags between fiscal actions and their effects on aggregate demand are probably fairly short.
Answer the following statement true (T) or false (F)