In 1996, an advisory committee of economists that studied the CPI found
a. no bias in the CPI
b. that in a typical year the CPI overstates the inflation rate by at least 1.1 percent per year
c. that the CPI consistently overestimates the inflation rate by less than 1 percent per year
d. that the CPI typically underestimates the inflation rate
e. that the CPI is somewhat erratic; it occasionally underestimates and occasionally overestimates the inflation rate
B
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Over the last two decades, trade worldwide has fallen (as a share of global output) because many countries have discovered that trade produces too many job losses.
Answer the following statement true (T) or false (F)
There is no opportunity cost of obtaining
A) a free good. B) a scarce good. C) any good a person acquires, as long as they value it highly enough. D) any good a person acquires, as long a they think it is worth the effort.
Refer to the above figure. Suppose that the economy initially is operating along AD1
If the government seeks to close the recessionary gap by raising government spending without any change in taxation, which moves the aggregate demand curve from AD1 to AD2, then to AD3. Which of the following scenarios is TRUE? A) Interest rates fall and investment rises. B) Both interest rates and investment fall. C) Both interest rates and investment rise. D) Interest rates rise and investment falls.
Which of the following is true? I. A rational choice is always made in the pursuit of social interest. II. Economics is a social science. III. Economists try to understand how the economic world works by testing positive statements.
A. A rational choice is always made in the pursuit of social interest. B. ii and iii C. only i D. only ii E. only iii F. i and ii Reset Selection