The prices of assets are included in standard measures of inflation.
Answer the following statement true (T) or false (F)
False
Standard measures of inflation focus on goods and services and do not count assets such as gold or houses, although many people use these as a store of wealth.
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Which of the following is correct?
A. If the demand for a product is inelastic, a change in price will cause total revenue to change in the opposite direction. B. If the demand for a product is inelastic, a change in price will cause total revenue to change in the same direction. C. If the demand for a product is inelastic, a change in price may cause total revenue to change in either the opposite or the same direction. D. The price elasticity coefficient applies to demand, but not to supply.
If the cyclically-adjusted budget shows a deficit zero and the actual budget shows a deficit of about $150 billion, it can be concluded that there is:
A. Built-in stability B. A cyclical deficit C. An expansionary fiscal policy D. A contractionary fiscal policy