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Author Question: The GDP deflator is a broader measure of the price level than the CPI because A) it covers sales ... (Read 66 times)

TVarnum

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on: Jun 30, 2018
The GDP deflator is a broader measure of the price level than the CPI because
 
  A) it covers sales tax.
  B) it covers rents.
  C) it covers investment.
  D) it factors out fluctuations in seasonal items.

Question 2

By rescuing large, troubled institutions, as happened during the 2007-2009 financial crisis and recession with institutions like AIG and General Motors, policymakers attempted to achieve financial and economic stability in the short run, but their
 
  actions may encourage even riskier behavior on the part of these large institutions in the future if these institutions believe that they, too, will be bailed out if they get in trouble. This risk faced by policymakers is known as A) asymmetric information.
  B) quantitative easing.
  C) too-big-to-fail policy.
  D) moral hazard.


dawsa925

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

D


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