1. To determine the consumer price index (CPI)_____
A. only the current market basket at base-year prices needs to be known
B. the values of the current market basket at current prices and the base-year market basket at base-year prices need to be known
C. the values of the current market basket at current and base-year prices need to be known
D. the values of the base-year market basket at current and base-year prices need to be known
2. Which of the following is true about the consumer price index (CPI) and the GDP price index?
A. CPI includes products that are widely used, while GDP price index includes all goods and services
B. Both yield identical numbers for price level changes for any two years
C. The CPI measures changes in relative prices of goods, while the GDP price index measures changes in the absolute price level of a fixed basket of goods and services
D. Both measures weigh prices by quantities consumed in some base year
3. _____ is measured in terms of current-year prices
A. Nominal gross domestic product (GDP)
B. GDP price index
C. Arbitrage
D. Real gross domestic product (GDP)
4. Real gross domestic product (GDP) shows
A. nominal GDP adjusted for taxes
B. constant dollar GDP
C. total spending on intermediate goods and services
D. net domestic product