The Consumer Price Index compares the:
a. prices of all goods and services in the economy compared to the prices of those goods and services in a base year.
b. prices of consumer goods and services that a household purchases to the prices of those goods and services purchased in a base year.
c. prices of producer goods and services that are made for consumers to the prices of those goods and services in a base year.
d. prices of goods and services that are purchased by producers to the prices of those goods and services in a base year.
e. prices of goods and services that are purchased by consumer manufacturers to the prices of those goods and services in a base year.
Question 2
Keynesian economics focuses on the role of aggregate spending in determining the level of real GDP.
a. True
b. False
Indicate whether the statement is true or false
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