Which statement is CORRECT? The Consumer Price Index is considered the best measure of long-run, underlying inflation because it includes all consumer goods in its calculation. The output gap measures the degree to which macro-policy makers have succeeded in achieving their goal of price stability. The unemployment rate is calculated by adding up the number of workers unemployed and dividing it by the number of workers looking for a job but who have been unable to find work. Core inflation is considered the best measure of long-run, underlying inflation because it excludes volatile food and energy prices in its calculation. The unemployment rate is calculated by adding up the size of the labor force and dividing it by the number of workers unemployed.

Which statement is CORRECT? The Consumer Price Index is considered the best measure of long-run, underlying inflation because it includes all consumer goods in its calculation. The output gap measures the degree to which macro-policy makers have succeeded in achieving their goal of price stability. The unemployment rate is calculated by adding up the number of workers unemployed and dividing it by the number of workers looking for a job but who have been unable to find work. Core inflation is considered the best measure of long-run, underlying inflation because it excludes volatile food and energy prices in its calculation. The unemployment rate is calculated by adding up the size of the labor force and dividing it by the number of workers unemployed.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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