Using a Paasche index to calculate the Consumer Price Index (CPI)

A) weights quantities with current prices.
B) weights prices with base-year quantities.
C) weights quantities with base-year prices.
D) weights prices with current year quantities.

D

Economics

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The hypothesis that people combine the effects of past policy changes on important economic variables with their own judgment about the future effects of current and future policy changes is the basis of the

A) short-run Phillips curve hypothesis. B) rational expectations hypothesis. C) demand-pull inflation hypothesis. D) adaptive hypothesis.

Economics

Because of voter rational ignorance, the government might not produce the efficient quantity of a public good

Indicate whether the statement is true or false

Economics