In the Long Run, Imports Are Paid for by

question 239

Multiple Choice

In the long run, imports are paid for by

• A) investment.
• B) exports.
• C) dollars.
• D) gold or other universally accepted monies.

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Definitions:

CPI

Consumer Price Index, an indicator that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

GDP Deflator

A measure of the price level of all domestically produced goods and services in a country and is used to convert output measured at current prices into constant-dollar GDP.

Economists

Experts focused on exploring how goods and services are created, shared, and used, while examining trends and problems in the economy.

CPI

The Consumer Price Index reflects the average cost changes over time for a mix of consumer goods and services, including items such as food, medical care, and transportation, through a weighted average approach.