Which one of the following is a correct description of an economic measure?
A) The consumer price index is a monthly indicator of changes in the price of goods at various stages of production.
B) The monthly estimate of total sales by the Commerce Department is known as the consumer price index.
C) The unemployment rate shows the number of payroll jobs that exist in the economy.
D) The amount of funds in circulation, in checking, savings and money market accounts and in CDs is referred to as the money supply.

Question

Quizplus · Accepted Answer

The amount of funds in circulation in various types of bank accounts is referred to as the money supply. The consumer price index measures changes in the price of goods and services, while the unemployment rate shows the percentage of people who are willing and able to work but cannot find employment. The monthly estimate of total sales is known as retail sales, not the consumer price index.

Which One of the Following Is a Correct Description of an Economic