Multiple Choice
Suppose lawn mowers are part of the market basket used to compute the CPI.Suppose also that the quality of lawn mowers deteriorates while the price of lawn mowers stays the same.If the Bureau of Labor Statistics is able to precisely adjust the CPI for the improvement in quality,then,other things equal,
A) the CPI will rise.
B) the CPI will fall.
C) the CPI will stay the same.
D) lawn mowers will no longer be included in the market basket.
Correct Answer:
Verified
Correct Answer:
Verified
Q33: Core CPI is<br>A)the CPI including only food,
Q41: An important difference between the GDP deflator
Q42: From 2013 to 2014,the CPI for medical
Q43: Changes in the producer price index are
Q44: The GDP Deflator reflects<br>A)the prices of all
Q45: The price index was 128 in 2013,and
Q48: For purposes of calculating the CPI,the housing
Q49: Which of the following changes in the
Q51: For an imaginary economy,the consumer price index
Q127: In the United States, if the price