The key reason that the Laspeyres price index tends to overstate the impact of price changes on consumers is that it:
A) only accounts for price increases and ignore price decreases.
B) measures prices two periods after the actual price changes occurred.
C) ignores the possibility that consumers alter their consumption as prices change.
D) All of the above are correct.
E) none of the above
C
Economics
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The quantity of money people want to hold increases if
A) the price level falls. B) the nominal interest rate rises. C) real GDP increases. D) All of the above answers are correct.
Economics
A supply curve that is upward sloping means that:
A) demand is being ignored. B) consumers will buy less at lower prices. C) suppliers will want to sell more at higher prices. D) suppliers will want to sell less at higher prices.
Economics