What is core inflation? Why is it used?
What will be an ideal response?
Core inflation refers to the calculation of inflation without food and energy items included in the price index. The reason that food and energy prices are removed from the inflation calculation is that they are quite volatile and thus mask what the underlying inflation rate is for core items in the price index.
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According to the real-business-cycle perspective
A) the economy cannot be stabilized by policy activism. B) the Phillips curve is very important. C) passive policy making is important. D) active policy making is important.
When a firm can achieve economies of scale by expanding, its long-run ATC curve:
A. slopes downward. B. slopes upward. C. is flat. D. Any of these is possible.
Suppose a quota on foreign-made automobiles is proposed in Congress. Which of the following groups is most likely to oppose the bill?
a. American Automobiles Manufacturers. b. Consumers. c. American Steel Workers. d. United Auto Workers.
Successive monopolies face the problem of:
a. double marginalization. b. volumetric interdependence. c. opportunism. d. predatory pricing.