Question :
211.AssumemostathleticapparelboughtbyU.S.consumersisimportedfromothernations.Ifallelseisconstant,anincreaseinthepriceofforeign-madeathleticapparelwillcausetheU.S.
a.consumerpriceindexandGDPdeflatortoincr : 1261697
211.AssumemostathleticapparelboughtbyU.S.consumersisimportedfromothernations.Ifallelseisconstant,anincreaseinthepriceofforeign-madeathleticapparelwillcausetheU.S.
a.consumerpriceindexandGDPdeflatortoincreasebyexactlythesameamount.
b.GDPdeflatortoincreasemorethantheconsumerpriceindex.
c.consumerpriceindextoincreasemorethantheGDPdeflator.
d.GDPdeflatortodecreaselessthantheconsumerpriceindex.
212.Ingeneral,ifaconsumergoodisproduceddomesticallyandconsumeddomestically,adecreaseinitspricewillhavewhichofthefollowingeffects?
a.TheconsumerpriceindexwilldecreaserelativelymorethanwilltheGDPdeflator.
b.TheconsumerpriceindexandtheGDPdeflatorwilldecreasebythesameamount.
c.TheconsumerpriceindexwilldecreaserelativelylessthanwilltheGDPdeflator.
d.OnecannotgeneralizeaboutthedecreaseintheconsumerpriceindexrelativetothedecreaseintheGDPdeflator.
213.Ingeneral,ifaconsumergoodisproduceddomesticallyandconsumeddomestically,anincreaseinitspricewillhavewhichofthefollowingeffects?
a.TheconsumerpriceindexwillincreaserelativelymorethanwilltheGDPdeflator.
b.TheconsumerpriceindexandtheGDPdeflatorwillincreasebythesameamount.
c.TheconsumerpriceindexwillincreaserelativelylessthanwilltheGDPdeflator.
d.OnecannotgeneralizeabouttheincreaseintheconsumerpriceindexrelativetotheincreaseintheGDPdeflator.
214.Thepriceofmilkincreasesdramatically,causinga0.5percentincreaseintheCPI.ThepriceincreasewillmostlikelycausetheGDPdeflatortoincreaseby
a.morethan0.5percent.
b.lessthan0.5percent.
c.0.5percent.
d.Noneoftheaboveiscorrect;thisparticularpriceincreasewillnotaffecttheGDPdeflator.
215.TheconsumerpriceindexandtheGDPdeflatoraretwoalternativemeasuresoftheoverallpricelevel.Which ofthefollowingstatementsaboutthetwomeasuresiscorrect?
a.Thetwomeasuresareconstructeddifferently,buttheyalwaysindicatethesameinflationrate.
b.Thesubstitutionbiasappliesequallytobothmeasures.
c.AchangeinthepriceofKoreantelevisionsisreflectedintheU.S.consumerpriceindexbutnotintheU.S.GDPdeflator.
d.Alloftheabovearecorrect.
216.IfthepriceofItalianshoesimportedintotheUnitedStatesincreases,then
a.boththeGDPdeflatorandtheconsumerpriceindexwillincrease.
b.neithertheGDPdeflatornortheconsumerpriceindexwillincrease.
c.theGDPdeflatorwillincrease,buttheconsumerpriceindexwillnotincrease.
d.theconsumerpriceindexwillincrease,buttheGDPdeflatorwillnotincrease.
217.IfthepriceofSpanisholivesimportedintotheUnitedStatesdecreases,then
a.boththeGDPdeflatorandtheconsumerpriceindexwilldecrease.
b.neithertheGDPdeflatornortheconsumerpriceindexwilldecrease.
c.theGDPdeflatorwilldecrease,buttheconsumerpriceindexwillnotdecrease.
d.theconsumerpriceindexwilldecrease,buttheGDPdeflatorwillnotdecrease.
218.AdecreaseinthepriceoflargetractorsimportedintotheUnitedStatesfromRussia
a.leavestheGDPdeflatorunchangedbutdecreasestheconsumerpriceindex.
b.decreasestheGDPdeflatorbutleavestheconsumerpriceindexunchanged.
c.decreasesboththeGDPdeflatorandtheconsumerpriceindex.
d.leavesboththeGDPdeflatorandtheconsumerpriceindexunchanged.
219.SupposethatU.S.miningcompaniespurchaseGerman-madeoretrucksatareducedprice.Byitself,whateffectwillthispurchasehaveontheGDPdeflatorandontheconsumerpriceindex?
a.TheconsumerpriceindexandtheGDPdeflatorwillbothfall.
b.TheconsumerpriceindexandtheGDPdeflatorwillbothbeunaffected.
c.Theconsumerpriceindexwillfall,andtheGDPdeflatorwillbeunaffected.
d.Theconsumerpriceindexwillbeunaffected,andtheGDPdeflatorwillfall.
220.Most,butnotall,athleticapparelsoldintheUnitedStatesisimportedfromothernations.Ifthepriceofathleticapparelincreases,theGDPdeflatorwill
a.increaselessthanwilltheconsumerpriceindex.
b.increasemorethanwilltheconsumerpriceindex.
c.notincrease,buttheconsumerpriceindexwillincrease.
d.increase,buttheconsumerpriceindexwillnotincrease.