If the average price level rises from 120 in year 1 to 130 in year 2, the inflation rate between years 1 and 2 will be:
What will be an ideal response?
8.33%
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The essential difference between paper money and coins as forms of money is that
A) paper money serves as a unit of account while coins do not. B) the metallic content of coins makes them more acceptable as money. C) paper is paper and not metal. The metal is more durable. D) paper money issued by the Federal Reserve Board is backed by gold while coins are not.
When the price of apples goes up
A) the quantity of apples demanded will decrease, ceteris paribus. B) the demand for apples will increase, ceteris paribus. C) the quantity of apples demanded will increase, ceteris paribus. D) the demand for apples will decrease, ceteris paribus.
Because it has a direct effect on the hiring decisions of firms, a change in business confidence has a much larger impact on the level of economic activity than does a change in consumer confidence
Indicate whether the statement is true or false
If movies on DVD for home rental and movies seen at a theater are substitutes, and the price of movies seen at a theater increases, the demand for movies on DVD will:
A) increase. B) stay the same. C) decrease. D) cannot be determined.