Suppose someone told you that the chain-weighted price index for GDP in a country was 135. Why does this fact not convey much information to you?
What will be an ideal response?
We do we have any price index information from any other years. So while we have a measure of "relative prices," we don't know what this measure is relative to.
Economics
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One of the main reasons behind hyperinflation episodes is:
A) a decrease in real GDP. B) large government budget deficits. C) high tax rates. D) a decrease in the demand for consumer goods.
Economics
One reason markets may fail to provide the optimal quantity of public goods is the problem of
A) determining what the public wants. B) nontariff barriers. C) nondiscrimination. D) free riders. E) economic integration.
Economics