Because increases in input prices eventually make it to consumers when they buy the final product, the PPI:
A. is considered a good predictor of future consumer prices.
B. is a lag variable for inflation.
C. accounts for inflation before it reaches consumers, adjusting the CPI downward.
D. accounts for inflation before it reaches consumers, adjusting the CPI upward.
A. is considered a good predictor of future consumer prices.
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Which type of unemployment is most likely to lead unemployed workers to retrain or relocate?
A) cyclical B) forced C) structural D) frictional E) search
Refer to Figure 10-3. Best friends Laurel and Hardy both enjoy watching romantic comedies and science fiction movies. Based on the diagrams above what can you conclude about their movie preferences?
A) The diagrams do not provide any information about relative preferences. B) They have identical movie preferences. C) Hardy enjoys romantic comedies more than Laurel. D) Hardy enjoys science fiction movies more than Laurel.