In economics, the term indexing refers to . . . (a) adjusting real values for changes in nominal value. (b) adjusting nominal values for output values. (c) adjusting the nominal value of something in order for it to maintain its real value. (d) adjusting prices for changes in government's tax rates.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 6SCQ: The Consumer Price Index is subject to the substitution bias and me quality/new goods bias. Are the...

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In economics, the term indexing refers to . . . (a) adjusting real values for changes in nominal value. (b) adjusting nominal values for output values. (c) adjusting the nominal value of something in order for it to maintain its real value. (d) adjusting prices for changes in government's tax rates. For the next seven questions, match the description in column B with the economic concept in column A: COLUMN A COLUMN B 19. Domestic 20. Legal tender 21. National 22. Savings 23. Real GDP 24. National income 25. Potential GDP (a) the influence of inflation is eliminated (b) full use of resources (c) within the boundaries of the country (d) permanent inhabitants of a country (e) the same as NNP at factor costs (f) difference between income and consumption (g) creditors must accept this money in repayment of debts.

Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

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