Author Question: Price indexes like the CPI are calculated using a base year. The term base year refers to: a. the ... (Read 117 times)

faduma · **on:** Jun 30, 2018

Price indexes like the CPI are calculated using a base year. The term base year refers to:
a. the first year that price data are available.
b. any year in which inflation was higher than 5 percent.
c. the most recent year in which the business cycle hit the trough.
d. an arbitrarily chosen reference year.

Question 2

The marginal propensity to consume (MPC) is the change in consumption divided by the change in income.
a. True
b. False
Indicate whether the statement is true or false