A ________ in the long-run real interest rate ________ household's demand for durable goods

Of the alternative measures of the price level, _________ overcomes the bias of the CPI and is a better measure of the cost of living because it _________

A. GDP price index; uses a current basket B. PCE price index; uses a current basket of all consumption goods C. PCE price index excluding food and energy; is less volatile D. GDP price index; includes all goods and services bought by Americans

The combination of rising inflation and higher unemployment is called:

A) recession. B) expansion. C) stagflation. D) deflation.