Question

Question 3

Inflation is experienced identically by all consumers

1. True
2. False

Question 4

When energy and food prices rise faster than the average of all other prices,

1. the overall CPI increases faster than the core CPI
2. The core CPI increases faster than the overall CPI
3. The core CPI increases at the same rate as the overall CPI

Question 5

A rise in the number of discouraged workers helps reduce the official unemployment rate, all else held constant.

1. True
2. False

Answer 1

Q3
Answer
False
all consumer consumes different basket of goods so the inflation to each one is different but on average it is the same.
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Q4
Answer
Option 1
the overall CPI increases faster than the core CPI
Core CPI does not account for energy and food price changes so the core CPI is less than overall CPI if the prices rise of energy and food faster than other prices.
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Q5
Answer
True
Discouraged workers are reduced from the unemployed workforce so the unemployment rate decreases.