Multi Choice 2014 SS Flashcards
1
Q
Double Counting refers to?
A
Including the value of intermediate goods in the measurement of GDP
2
Q
When economists talk about growth in the economy, they measure that growth with?
A
The percentage change in real GDP
3
Q
Changes in the PPI (Producer Price index) are useful for predicting changes in what?
A
The CPI (Consumer Price Index)
4
Q
An increase in the price of French wines imported into the USA will affect the CPI or GDP Deflator
A
The CPI but not the GDP Deflator as it doesn’t include imported goods
5
Q
In the USA, if the price of oil increases what will happen to the CPI and GDP deflator
A
The CPI will increase much more than the GDP Deflator
