In calculating the Consumer Price Index
A. the price of each item is allowed to change between the base period and current year but the quantity is held constant.
B. the quantity of each item is allowed to change between the base period and current year but the price is held constant.
C. both the price and quantity of each item is allowed to change between the base period and current year.
D. neither price nor quantity of each item is allowed to change between the base period and current year.
A. the price of each item is allowed to change between the base period and current year but the quantity is held constant.
You might also like to view...
One advantage of fiscal federalism is that its decentralized nature _____
a. allows for more rigid rules b. gives voters more choice c. creates thousands of bureaucracies d. forces local governments to collude with one another
Potential output is the
a. maximum rate of output that can ever be achieved. b. highest rate of output that has ever been achieved in the past. c. maximum sustainable output level consistent with the economy's resource base and current institutions. d. the rate of output present when the general level of prices is unstable.