To measure core inflation, the BLS excludes ______________ from the basket of goods used to calculate the CPI.
A. food and gasoline
B. food, clothing, and housing
C. food and housing
D. housing and gasoline
A. food and gasoline
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Assume the market is in equilibrium in the graph shown at demand D and supply S1 (and a quantity of 5). If the supply curve shifts to S2, and a new equilibrium is reached (at a quantity of 7), which of the following is true?
A. Consumer surplus increases by $5.
B. Consumer surplus decreases by $5.
C. Consumer surplus increases by $9.
D. Consumer surplus decreases by $9.
The existence of an inflationary gap or an recessionary gap depends on the
a. aggregate supply only. b. expenditure schedule. c. leakages schedule. d. injections schedule. e. aggregate demand and aggregate supply schedules.
Consumer surplus is the difference between:
a. what the consumer is willing to pay and what the consumer must actually pay to receive a good or service. b. the quantity of goods a consumer is willing to buy and the quantity of goods the consumer actually buys. c. what the producer is willing to receive and what the consumer must actually pay to receive a good or service. d. the quantity of goods a producer is willing to and the quantity of goods the consumer actually buys.
If this is a closed economy, what will the price of a bike be?
A. $40 B. $100 C. $140 D. $20