The price of dishwashers has remained relatively constant while the quality of dishwashers has improved. The CPI
A) is adjusted monthly to reflect the improvement in quality.
B) is increased monthly to reflect the increased quality of dishwashers.
C) has an upward bias if it is not adjusted to take account of the higher quality.
D) has an upward bias because it does not reflect the increased production of dishwashers.
E) should not take account of any quality changes because it is a price index not a quality index.
C
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Full-time students and prisoners are ________
A) not in the labor force B) in the labor force C) counted as discouraged workers D) counted as unemployed
The Fed can increase the federal funds rate by
A) selling government securities which increases bank reserves. B) selling government securities which decreases bank reserves. C) buying government securities which increases bank reserves. D) buying government securities which decreases bank reserves.