If the prices of the goods and services contained in the CPI market basket increase from the base period to the next year, we know that
A) the market basket used by the BLS must be changed next year to reflect consumers' new expenditures.
B) the next year's CPI will be below 100.
C) the next year's CPI will be above 100.
D) the inflation rate is falling.
E) the cost of the CPI market basket at next year's prices is lower than the cost of the CPI market basket at base period prices.
C
You might also like to view...
Suppose the actual budget deficit remains unchanged when the economy falls into a recession. This is an indication that
A) fiscal policy was used during the recession. B) monetary policy was not used during the recession. C) fiscal policy was not used during the recession. D) monetary policy was used during the recession.
Consider the two graphs above. Suppose that financial liberalization enables more businesses to access credit markets. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
Assume that M is $250 billion and V is 8. If V increases by 15%, what will be the change in nominal GDP?
What will be an ideal response?
Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the question(s) that follow.
Figure 2.2Refer to Figure 2.2. Point B represents a situation of
A. full employment but production inefficiency. B. less than full employment and production inefficiency. C. both full resource employment and production efficiency. D. less than full employment but production efficiency.