I the Concept of Real Income Is Sometimes Called Deflated

question 59

Multiple Choice

i. The concept of real income is sometimes called deflated income or income expressed in constant dollars and the CPI is called the deflator. ii. To deflate sales, the actual sales are multiplied by the wholesale price index and the result multiplied by 100.
iii. The CPI serves only one major function: as an economic indicator of the rate of inflation.

• A) (i) is a correct statement, but (ii) and (iii) are statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Size Constancy

A perceptual phenomenon where the perceived size of an object remains the same, despite changes in the size of the object's image on the retina.

Object Constancy

Correctly perceiving objects as staying the same in their size, shape, color, and lightness, across viewing conditions that yield different physical input to the eyes.

Wavelengths

The spacing between consecutive peaks of a wave, particularly in sound waves or electromagnetic waves.

Flipbook

A book with a series of pictures that vary gradually from one page to the next, so that when the pages are turned rapidly, the pictures appear to animate by simulating motion or some other change.