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Biased measure of the inflation rate

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Reference no: EM131396259

Submit a 4- to 5-page paper that addresses the following questions. Be sure to use references within the paper to support your answers.

  1. Why is there unemployment even when the economy is at "full employment"? What are some "costs of unemployment"?
  2. Is the CPI a biased measure of the inflation rate? Explain your answer.
  3. Explain how some government tax revenue and spending can depend on the state of the economy.
  4. Explain some limitations of using GDP as an indicator of standard of living (be sure to do some research on your own to find any alternative measures).

Reference no: EM131396259

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