Table 21.4Output (Units per Day)Total Cost (Dollars per Day)016130242358478At 3 units of output in Table 21.4, average fixed costs are

When comparing the annual inflation rate in the United States based on the CPI with the annual inflation rate based on the PCE price index, the data show that the

A) CPI measure tends to exceed the PCE price index measure. B) PCE price index measure tends to exceed the CPI measure. C) CPI measure and the PCE price index measure are equal. D) CPI measure and PCE price index measure move in opposite directions. E) CPI deflator and PCE price index cannot be compared because they measure prices of different baskets of goods and services.

When government decides to use fiscal policy:

A. It may take time to implement it. B. the expedited process of approval aids with quick enactment. C. the information for how much to change taxes is readily available. D. it always keeps the economy closer to potential GDP than it otherwise would be.