Two Alternative Measures of the Overall Level of Prices Are

question 125

Multiple Choice

Two alternative measures of the overall level of prices are

• A)the inflation rate and the consumer price index.
• B)the inflation rate and the GDP deflator.
• C)the GDP deflator and the consumer price index.
• D)the cost of living index and nominal GDP.

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Definitions:

Rate Of Yield

From an investment in stock, the ratio of the dividend to the total cost of the stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Par

A value assigned the shares of capital stock and stated on the stock certificate.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in cash or additional shares.