The Department of Labor Monitors Consumer Expenditures Through Its Annual

question 111

Multiple Choice

The Department of Labor monitors consumer expenditures through its annual Consumer Expenditure Survey. In 2011, consumers spent after taxes about 13 percent of their income on food, 34 percent on __________, 4 percent on clothes and 24 percent on transportation and health care, with the rest generally considered discretionary.

• A)education
• B)housing
• C)vacationing
• D)entertainment
• E)investments

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Definitions:

Inflation

The escalation rate of average prices for goods and services, which deteriorates buying power.

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices increase.

Deflation

A reduction in the overall price of products and services, frequently linked with a rise in the value of currency.

Recession Of 2001

A period of temporary economic decline during which trade and industrial activity were reduced, marked particularly by the bursting of the dot-com bubble.