The GDP deflator does not differ from the CPI in its measurement of inflation in that it:
A. measures the price changes of all goods, not just those in a typical consumer's basket.
B. uses the total quantities that are produced, not the ratio of what a typical consumer might consume.
C. does not include imports, which may have a real effect on the typical consumer's cost of living.
D. is the most widely used measure of price level changes for goods and services for consumers.
D. is the most widely used measure of price level changes for goods and services for consumers.
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The function of money illustrated by the prevailing prices of goods and services is the
A) medium of exchange function. B) unit of account function. C) standard of deferred payments function. D) store of value function.
Which of the following institutions may result in hold-up?
A. Long-term contracts B. Vertical integration C. Spot markets D. Piece rates