The chain-weighted index for GDP and the CPI differ in that the CPI
A) asks how much a fixed basket of goods costs in the current year as compared to the cost of those same goods in a base year while the chain-weighted index takes an average of price changes using base years from neighboring years.
B) excludes price changes from used and imported goods while the chain-weighted index includes these price changes.
C) is calculated by the Commerce Department while the chain-weighted index is calculated by local newspapers.
D) is calculated in nominal terms and the chain-weighted index is calculated in real terms.
A
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The law of supply states that, other things remaining the same,
A) demand increases when supply increases. B) if the price of a good increases, firms buy less of it. C) if the price of a good increases, the quantity supplied increases. D) as people's income increase, the supply of goods increases. E) if the price of a good increases, the supply increases.
As a result of recent empirical research, there has been a convergence of Keynesian and monetarist opinion to the view that
A) money is all that matters. B) money does matter. C) money does not matter. D) fiscal policy is all that matters.