An instrument rule is based on ________ of the economy while a targeting rule is based on ________ of the economy
A) the current state; the previous state
B) a forecast; the previous state
C) the previous state; the current state
D) the current state; a forecast
E) a forecast; the current state
D
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The CPI differs from the GDP deflator in that
a. the CPI is an inflation index, while the GDP deflator is a price index. b. substitution bias is not a problem with the CPI, but it is a problem with the GDP deflator. c. increases in the prices of foreign produced goods that are sold to U.S. consumers show up in the GDP deflator but not in the CPI. d. increases in the prices of domestically produced goods that are sold to the U.S. government show up in the GDP deflator but not in the CPI.
Which of the following decreases in labor demand is due to a change in product demand?
A. An increase in the price of steel increases the cost of producing cars and trucks, thus decreasing the demand for automobile workers. B. A decline in productivity in retailing decreases the demand for retail sales workers. C. The widespread availability of news on the web reduces the demand for newspaper workers. D. An increase in the price of paper increases the cost of making books, thus decreasing the demand for bookbinders.