ECONOMICS
BUSINESS CYCLES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Real GDP produced in one year divided by the real value of that GDP in another year
|
|
|
The dollars a person needs in order to buy a fixed collection of goods in a a year, compared to a base year
|
|
|
The change in prices that a consumer would have to pay for a fixed set of goods as a percentage of the same goods in a base year
|
|
|
The cost of labor purchased by firms in a year divided by the cost of the same amount of labor in a base year expressed as a percentage
|
|
|
The cost inputs purchased by firms in a year divided by the price of the same inputs in a base year expressed as a percentage
|
Detailed explanation-1: -The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.
Detailed explanation-2: -The correct answer is A. CPI includes products that are widely used, while the GDP price index includes all goods and services. The CPI does not include all the goods and services. Measurements of CPI depend on the fixed basket of goods.
Detailed explanation-3: -The percentage change in the consumer price index measures the inflation rate.
Detailed explanation-4: -The consumer price index (CPI) is a means to measure the weighted average cost of consumer bags of goods and services such as food, medical care, and transportation. It is evaluated by taking a cost change of each product in the prearranged bags of goods and averaging them.
Detailed explanation-5: -The correct answer is The Labour Bureau. Consumer Price Index Numbers for Industrial Workers is designed to measure a change over time in prices of a given basket of goods and services consumed by a defined population (i.e. Industrial Workers).