If Bureau of Labor Statistics Data Collectors Find That the Model

question 19

Multiple Choice

If Bureau of Labor Statistics data collectors find that the model of car they priced the previous month is no longer available on the market,they

• A)just drop that product from the calculation of the CPI
• B)ask the manufacturer to choose another of its models for the CPI calculation
• C)must look for an available model with very similar features
• D)keep entering the price of the car from the last month it was available
• E)None of the answers is correct

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Definitions:

Equation of Exchange

A formula representing the relationship between the money supply, its velocity, the price level, and the volume of transactions in an economy.

False Statement

An untrue or misleading assertion or claim intentionally or unintentionally conveyed as a fact.

Monetarists

Economists who support the idea that the money supply's fluctuations profoundly influence national output in the immediate future and the price level over more extended periods.

Economic Instability

A state characterized by significant fluctuations in economic activities such as employment, production, and prices, often leading to uncertainty.