Question :
221.AnincreaseinthepriceofIrishwhiskeyimportedintotheUnitedStateswillbereflectedin
a.boththeU.S.GDPdeflatorandtheU.S.CPI.
b.neithertheU.S.GDPdeflatornortheU.S.CPI.
c.theU.S. : 1261698
221.AnincreaseinthepriceofIrishwhiskeyimportedintotheUnitedStateswillbereflectedin
a.boththeU.S.GDPdeflatorandtheU.S.CPI.
b.neithertheU.S.GDPdeflatornortheU.S.CPI.
c.theU.S.GDPdeflator,butnottheU.S.CPI.
d.theU.S.CPI,butnottheU.S.GDPdeflator.
222.WhichisthemostaccuratestatementabouttheGDPdeflatorandtheconsumerpriceindex?
a.TheGDPdeflatorcomparesthepriceofafixedbasketofgoodsandservicestothepriceofthebasketinthebaseyear,whereastheconsumerpriceindexcomparesthepriceofcurrentlyproducedgoodsandservicestothepriceofthesamegoodsandservicesinthebaseyear.
b.Theconsumerpriceindexcomparesthepriceofafixedbasketofgoodsandservicestothepriceofthebasketinthebaseyear,whereastheGDPdeflatorcomparesthepriceofcurrentlyproducedgoodsandservicestothepriceofthesamegoodsandservicesinthebaseyear.
c.BoththeGDPdeflatorandtheconsumerpriceindexcomparethepriceofafixedbasketofgoodsandservicestothepriceofthebasketinthebaseyear.
d.BoththeGDPdeflatorandtheconsumerpriceindexcomparethepriceofcurrentlyproducedgoodsandservicestothepriceofthesamegoodsandservicesinthebaseyear.
223.TheconsumerpriceindexandtheGDPdeflatoraretwoalternativemeasuresoftheoverallpricelevel.Which ofthefollowingstatementsaboutthetwomeasuresiscorrect?
a.TheCPIinvolvesabaseyear;theGDPdeflatordoesnotinvolveabaseyear.
b.TheCPIcanbeusedtocomputetheinflationrate;theGDPdeflatorcannotbeusedtocomputetheinflationrate.
c.TheCPIreflectsthepricesofgoodsandservicesproduceddomestically;theGDPdeflatorreflectsthepricesofallgoodsandservicesboughtbyconsumers.
d.TheCPIreflectsafixedbasketofgoodsandservices;theGDPdeflatorreflectscurrentproductionofgoodsandservices.
224.Thebasketofgoodsintheconsumerpriceindexchanges
a.occasionally,asdoesthegroupofgoodsusedtocomputetheGDPdeflator.
b.automatically,asdoesthegroupofgoodsusedtocomputetheGDPdeflator.
c.occasionally,whereasthegroupofgoodsusedtocomputetheGDPdeflatorchangesautomatically.
d.automatically,whereasthegroupofgoodsusedtocomputetheGDPdeflatorchangesoccasionally.
225.In 1979and 1980,
a.theU.S.inflationrateasmeasuredbytheGDPdeflatorwashigherthanthatmeasuredbytheCPI,andthedifferencewasexplainedbyrapidlyrisingpricesofgoodsexportedbytheU.S.
b.theU.S.inflationrateasmeasuredbytheCPIwashigherthanthatmeasuredbytheGDPdeflator,andthedifferencewasexplainedbyrapidlyrisingpricesofgoodsexportedbytheU.S.
c.theU.S.inflationrateasmeasuredbytheGDPdeflatorwashigherthanthatmeasuredbytheCPI,andthedifferencewasexplainedbyrapidlyrisingoilprices.
d.theU.S.inflationrateasmeasuredbytheCPIwashigherthanthatmeasuredbytheGDPdeflator,andthedifferencewasexplainedbyrapidlyrisingoilprices.
226.Whichofthefollowingisthemostaccuratestatement?
a.Inthe1970s,thelate1980s,1990s,and2000s,theGDPdeflatorandtheCPIbothshowedhighratesofinflation.
b.Inthe1970s,boththeGDPdeflatorandtheconsumerpriceindexshowedhighratesofinflation,andinthelate1980s,1990s,and2000s,bothmeasuresshowedlowratesofinflation.
c.Inthe1970s,boththeGDPdeflatorandtheconsumerpriceindexshowedlowratesofinflation,andinthelate1980s,1990s,and2000s,bothmeasuresshowedhighratesofinflation.
d.Inthe1970s,thelate1980s,1990s,and2000s,theGDPdeflatorandtheCPIbothshowedlowratesofinflation.
227.Inadditiontotheconsumerpriceindex,theBureauofLaborStatisticsalsocalculatesthe
a.macroeconomicpriceindex.
b.producerpriceindex.
c.rentalunitpriceindex.
d.termsoftrade.
228.Pricechangesfromyeartoyeararenotproportional,andconsumersrespondtothesechangesbyalteringtheirspendingpatterns.Theproblemthiscreatesforinflationcalculationsiscalled
a.deflation.
b.inflation.
c.unmeasuredqualitychange.
d.substitutionbias.
229.OneofthedifferencesbetweentheGDPdeflatorandtheconsumerpriceindexis
a.theGDPdeflatorincludesincomeearnedbyAmericancitizensworkinginforeigncountriesandtheconsumerpriceindexisbasedsolelyonpurchasesmadeintheU.S.
b.theconsumerpriceindexbasketofgoodsisupdatedconstantlybytheBureauofLaborStatisticswhereastheGDPdeflatorisupdatedonlyoccasionally.
c.theconsumerpriceindexincludesitemsnotincludedintheGDPdeflatorsuchasairplanespurchasedbytheAirForce.
d.theGDPdeflatorreflectspricesforallgoodsandservicesproduceddomesticallyandtheconsumerpriceindexreflectspricesforsomegoodsandservicesboughtbyconsumers.
230.A2009Chevroletmodelhasmorehorsepowerthanthe2008versionandisincludedintheBLSbasketofgoods.BLSattemptstoaccountforthischangeinthemarketbasketby
a.droppingthegoodfromthebasket.
b.substitutinginadifferentvehiclewiththesamehorsepowerasthe2008model.
c.adjustingtheshareofthemarketbasketallocatedtotransportation.
d.adjustingthepriceofthegoodtoaccountforthequalitychange.
231.Whichofthefollowingstatementsiscorrect?
a.Theconsumerpriceindexisameasureoftheoveralllevelofprices,whereastheGDPdeflatorisnotameasureoftheoveralllevelofprices.
b.If,intheyear2011,theconsumerpriceindexhasavalueof123.50,thentheinflationratefor2011mustbe
23.50percent.
c.ComparedtotheGDPdeflator,theconsumerpriceindexisthemorecommongaugeofinflation.
d.TheconsumerpriceindexandtheGDPdeflatorreflectthegoodsandservicesboughtbyconsumersequallywell.
232.WhichofthefollowingstatementsregardingtheconsumerpriceindexandtheGDPdeflatoriscorrect?
a.Thetwopricemeasuresarealwaysequal.
b.Divergencebetweenthetwopricemeasuresistherule,nottheexception.
c.Divergencebetweenthetwopricemeasuresistheexception,nottherule.
d.Noneoftheaboveiscorrect.