The consumer price index (CPI)
A) compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2.
B) compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period.
C) measures the increase in the prices of the goods included in GDP.
D) is the ratio of the average price of a typical basket of goods to the cost of producing those goods.
B
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In the table above, what is the government's sector balance?
A) a deficit of $700 billion B) a surplus of $600 billion C) a deficit of $100 billion D) a surplus of #100 billion
According to the real business cycle model,
A) increases in aggregate demand do not affect GDP. B) increases in aggregate demand lower the price level. C) increases in aggregate demand lower GDP. D) increases in aggregate demand raise GDP.