Q1. If you were to look at the CPI calculations based from 1984-1986, what of the following goods would likely be left out of that CPI calculation?

a.eggs

b.televisions

c.transmission fluid

d.smart phones

Q2. In the last few decades the electronics manufacturing sector has found it difficult to compete with electronics from foreign competitors. High labor costs is one of the main reasons economist site as the lack of competitiveness for the electronics manufacturing industry. If there was modest inflation how could it possibly help the electronics manufacturing industry compete?

a.The consumers of the electronics have increased purchasing power.

b.It could allow real wages to downwardly adjust more easily.

c.Business loans would cost less for the U.S. electronics manufacturers.