The inflation rate is the
A) difference between the current period CPI and the base period CPI.
B) percentage change in the composition of the CPI market basket from the base year to the next year.
C) difference in the price level from one year to the next multiplied by 100.
D) difference between the base period CPI and the current period CPI.
E) percentage change in the CPI from one year to the next year.
E
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HAC standard errors should be used because
A) they are convenient simplifications of the heteroskedasticity-robust standard errors. B) conventional standard errors may result in misleading inference. C) they are easier to calculate than the heteroskedasticity-robust standard errors and yet still allow you to perform inference correctly. D) when there is a structural break, then conventional standard errors result in misleading inference.
The ratio of a change in consumption to a change in income is the:
a. consumption function. b. propensity to consume. c. average propensity to consume. d. extra propensity to consume. e. marginal propensity to consume.