For the purpose of measuring the cost of living for consumers, one reason the GDP price index is
NOT a good substitute for the CPI is because the GDP price index
A) and the CPI move in the same direction over time.
B) includes the prices of exported goods, which are not consumed in the United States.
C) compares a current year basket of goods with a base year basket of goods.
D) compares current year's prices with base year's prices.
E) has a larger bias than does the CPI.
Correct Answer:
Verified
Q7: If the cost of the CPI market
Q8: If your nominal income is $80,000 and
Q9: In a small, agricultural nation, consumers buy
Q10: The real interest rate equals the
A)nominal interest
Q11: If the nominal wage is $30 in
Q13: The GDP deflator measures
A)the price level.
B)nominal GDP.
C)the
Q14: The CPI is reported once every
A)quarter.
B)other year.
C)year.
D)week.
E)month.
Q15: An example of the commodity substitution bias
Q16: Consumers in Beachland consume only two goods,
Q17: The CPI was 170 last year and
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