What is the consumer price index? How is it different from the GDP price index?
What will be an ideal response?
The consumer price index (CPI) is a price index that measures the ratio of the current price of a market basket of goods and services in a base period to a market basket of the same goods and services in a current period. It is designed to measure the cost of a constant standard of living. The market basket includes some 300 goods bought by the typical urban consumer. The GDP price index compares the price (or cost) of goods and services that make up GDP in a specific year to the price of the same set of goods in a reference year. The GDP is a much broader measure that includes consumer goods and services, capital goods, goods and services purchased by government, and goods and services entering world trade.
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A dominant strategy ________
A) always results in equal payoffs to all the players in a game B) always results in zero payoff to the opponent C) results in a higher payoff irrespective of the strategy chosen by the other player D) always results in a lower payoff irrespective of the strategy chosen by the other player
Under a fixed exchange rate regime, if the domestic currency is initially overvalued, that is, below par, the central bank must intervene to purchase the ________ currency by selling ________ assets
A) domestic; foreign B) domestic; domestic C) foreign; foreign D) foreign; domestic