The consumer price index measures:

The consumer price index measures:
 a. the cost of all goods and services produced in the U.S. economy.
 b. the average change over time in the selling prices received by domestic producers for their output.
  c. the cost of a fixed market basket of consumer goods and services produced in the U.S. economy.
  d. the ratio of an economy's nominal GDP to its real GDP.
 e. the income distribution of an economy.

QUESTION 2

The government defines poverty as an income level less than four times the cost of a minimal diet.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

Increased government borrowing to cover a budget deficit results in:
 a. a higher interest rate and the depreciation of the U.S. dollar.
  b. a higher interest rate and the appreciation of the U.S. dollar.
  c. a lower interest rate and the depreciation of the U.S. dollar.
  d. a lower interest rate and the appreciation of the U.S. dollar.
  e. increased purchases of foreign assets by U.S. residents.

QUESTION 4

One of the most widely reported measures of inflation is the:
 a. consumer price index.
  b. producer price index.
  c. GDP deflator.
 d. Gini coefficient.
 e. real interest rate.

QUESTION 5

In determining the poverty level, the Census Bureau counts cash transfers, but not in-kind transfers, thereby understating the actual amount of antipoverty transfers made.
 a. True
  b. False
  Indicate whether the statement is true or false