3. The business cycle is represented by a. percentage deviations in real GDP from its trend. b. percentage changes in real GDP trend from the previous period c. percentage changes in real GDP from the previous period d. percentage deviations in potential real GDP from its trend 4. Fixed-weight CPI tends to overstate inflation relative to chain-weight CPI over time because a. the quality of goods improves. b. new goods are introduced. c. consumers substitute relatively cheaper goods for more expensive ones. d. All of the above
3. The business cycle is represented by a. percentage deviations in real GDP from its trend. b. percentage changes in real GDP trend from the previous period c. percentage changes in real GDP from the previous period d. percentage deviations in potential real GDP from its trend 4. Fixed-weight CPI tends to overstate inflation relative to chain-weight CPI over time because a. the quality of goods improves. b. new goods are introduced. c. consumers substitute relatively cheaper goods for more expensive ones. d. All of the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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