Question
Which of the following is true? a) CPI takes into account that the consumption basket changes in response to changes in relative prices. b) If
Which of the following is true?
a) CPI takes into account that the consumption basket changes in response to changes in relative prices.
b) If the number of unemployed is 5 million and the adult (civilian noninstitutional) population is 100 million, then the unemployment rate is 5%.
c) If consumption is an increasing function of disposable income and a decreasing function of the real interest rate, then an INCREASE in the incentives to invest will DECREASE the equilibrium real interest rate in a closed economy.
d) A $10 billion increase in tax revenue will increase national saving by less than $10 billion.
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