RHW8ANS - RHW8 1 13 17 24 32 34 36 37 38 Question1 Single...

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RHW8 1 13 17 24 32- 34 36- 37 38 Question1 - Single Correct 1.0 Point The CPI is a useful index for all of the following reasons except A it is used to determine whether people's incomes are keeping up with the costs of the things they buy. B it is used to measure changes in the cost of living. C it used to measure the average price level of all final goods and services produced. D it is used to compute the U.S. inflation rate. CPI ONLY MEASURES FINAL GOODS & SVCS PURCHASED BY URBAN CONSUMERS (I.E. ONLY C NOT I, G,) Question13 - Single Correct 1.0 Point Which of the following statements is true ? I. The CPI is computed using a fixed basket of goods. II. The implicit price deflator is computed a fixed basket of goods. III. The CPI and the implicit price deflator can be used to calculate inflation. A I, II, and III B I and II only C I and III only D II and III only IMPLICIT GDP DEFLATOR IS COMPUTED AS NOMINAL GDP/REAL GDP AND IS ESSENTIALLY A CHANGING MARKET BASKET Question17 - Single Correct 1.0 Point Which of the following is the broadest based price index? A the consumer price index B the producer price index C the implicit price deflator D the personal consumption expenditures price index IMPLICIT GDP DEFLATOR – PRICE OF EVERYTHING IN GDP, NOT JUST C Question24 - Single Correct 1.0 Point Which of the following is not a consequence of deflation?
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A Deflation causes uncertainty about the future. B The threat of deflation can make people reluctant to borrow for long periods.
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This note was uploaded on 02/05/2012 for the course 331 464 taught by Professor Hsu during the Spring '09 term at Rutgers.

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RHW8ANS - RHW8 1 13 17 24 32 34 36 37 38 Question1 Single...

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