When pollution emissions can be measured taxation will tend to be more effective than any other method of controlling pollution

The Consumer Price Index (CPI) measures the changes of the

A) prices paid by consumers for a fixed market basket of consumer goods and services. B) quantities of a fixed market basket of goods produced by businesses. C) lowest prices paid by consumers for a fixed market basket of consumer goods and services. D) prices paid by all businesses for a fixed market basket of production resources. E) prices paid by consumers and businesses for a fixed market basket of goods and services.

Total factor productivity shocks are not a good explanation of economic fluctuations in the New Keynesian model for all the following reasons except

A) they do not generate output fluctuations. B) employment drops when TFP increases. C) the real wage drops when TFP increases. D) they do not generate price fluctuations.