The "real" price of a good is known as
A) the absolute price of the good.
B) the dollar price of the good since we use dollars in the United States.
C) relative price of the good.
D) the price actually paid for a good instead of the sticker price.
Answer: C
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What is the core inflation rate and how does it differ from the overall CPI inflation rate?
What will be an ideal response?
If the exchange rate changes from $1.52 = £1.00 to $1.65 = £1.00, then relative to each other,
A) both the dollar and the British pound have appreciated. B) both the dollar and the British pound have depreciated. C) the dollar has appreciated and the British pound has depreciated. D) the dollar has depreciated and the British pound has appreciated.
All of the following are likely results of a negative demand shock EXCEPT
A) a negative output gap. B) lower inflation. C) IS shifts to the left. D) Phillips curve shifts to the left.
If voters A, B, and C have the following demand curves for a public library Pa = 5 - Q, Pb = 10 - 2Q, and Pc = 15 - 3Q, then social demand for a public library is:
A. P = 15 - Q. B. P = 30 - 6Q. C. P = 6 - 30Q. D. P = 30 - 3Q.