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All of the following are components of the formula used to calculate gross domestic product except:
GDP calculated through the expenditure approach includes all of the following except household income.
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What does the consumer price index measure?
The CPI is a measure of the inflation rate (the percentage change of the consumer price index from one period to the next.)
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Which of the following is correct regarding the CPI for measuring the estimated decrease in a company's buying power?
The CPI measures the costs of a market basket of specific goods commonly purchased by consumers.
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The CPI rises from 131 in year 1 to 136.5 in year 2. What is the annual inflation rate?
(136.5-131)/131 * 100 = 4.2%
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If the nominal interest rate is 10% and the rate of inflation is 5%, the real interest rate is:
The real interest rate is equal to the nominal interest rate minus inflation.
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Under perfect or pure competition, ____ suppliers and customers act independently and there are ____ barriers to entry.
Under perfect or pure competition, plenty of suppliers and customers act independently and there are no barriers to entry.
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