Explain how the introduction of new goods might bias the calculation of the consumer price index
Because the CPI is based on a fixed basket of goods and services, any new goods would not be included in this basket. As a result, the CPI would fail to reflect the increase in the value of a dollar that arises from new goods being introduced.
Economics
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In the foreign exchange market, how does a change in the expected future U.S. exchange rate affect the demand for dollars?
What will be an ideal response?
Economics
Incrementalism makes sense from a politician's perspective, because _____
a. it keeps all government employees happy b. it eliminates the cost of preparing a budget c. it maximizes political support by giving all special interests something d. they want to be seen in favor of bigger government
Economics