Which statement is CORRECT? O The Consumer Price Index is considered the best measure of long-run, underlying inflation because it includes all consumer goods in its calculation. O The unemployment rate is calculated by adding up the number of workers unemployed and dividing it by the number of workers looking for a job but who have been unable to find work. The unemployment rate is calculated by adding up the size of the labor force and dividing it by the number of workers unemployed. The output gap measures the degree to which macro-policy makers have succeeded in achieving their goal of price stability. Core inflation is considered the best measure of long-run, underlying inflation because it excludes volatile food and energy prices in its calculation. Click Submit to complete this assessment. Question 14 of 14 Save and Submit

Which statement is CORRECT? O The Consumer Price Index is considered the best measure of long-run, underlying inflation because it includes all consumer goods in its calculation. O The unemployment rate is calculated by adding up the number of workers unemployed and dividing it by the number of workers looking for a job but who have been unable to find work. The unemployment rate is calculated by adding up the size of the labor force and dividing it by the number of workers unemployed. The output gap measures the degree to which macro-policy makers have succeeded in achieving their goal of price stability. Core inflation is considered the best measure of long-run, underlying inflation because it excludes volatile food and energy prices in its calculation. Click Submit to complete this assessment. Question 14 of 14 Save and Submit

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 34P: The total price of purchasing a basket of goods in the United Kingdom over four years is: year...

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1Why low rate inflation is considered necessary for economic grwoth? Oa It does not affect the purchasing power of wages Ob. It indicates that the currency is in continuous demand by the people Oc taffects only the rich and not the poor Od itact as an incentive to boost in supply in the economy 2When the economy is in Keynesian macroeconomic equilibrium, planned investment is greater than actual investment. O a False O b. True 3Government fixes the floor and ceiling price which will not allow the producers to increase the price on their wish, this is a type of. O a Physical control called price pegging O b. Monetary policy control measures O. Physical control called price tagging Od. Fiscal policy control measures O e None 4Rising output coupled with falling prices is called stagflation O a. False O b. True 5The Value of marginal propensity to consume lies O a. O to 1 O b. Less than zero Oc -1 to 1 Od. Between O to 1 6The Central Bank way to control inflation is Oa Monetary policy…