Multiple Choice
As a result of the changing variety and quality of goods that the typical consumer purchases each year,many economists argue that the CPI might:
A) have to be abandoned in favor of a better measure of inflation.
B) not be as good a measure of inflation as the GDP deflator is.
C) understate inflation.
D) overstate inflation.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: High and volatile inflation:<br>A) causes the price
Q5: Which of these statements is NOT correct?<br>A)
Q6: A measure of the average price received
Q7: The basket of goods bought by the
Q8: Suppose a worker earns twice as much
Q10: Money illusion occurs when people:<br>A) become irrational
Q11: Inflation generally causes the taxes paid by
Q12: Changes in money velocity and GDP are
Q13: Inflation tends to cause nominal wages to:<br>A)
Q14: If the growth rate of the money