Suppose that the total expenditures for a typical household in 2015 equaled $2,500 per month, while the cost of purchasing exactly the same items in 2017 was $3,000. If 2015 is the base year, the CPI for 2015 equals:
A. 0.83
B. 1.20
C. 1.00
D. 1.25
Answer: C
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If the Fed injects reserves into the banking system and they are held as excess reserves, then the money supply
A) increases by only the initial increase in reserves. B) increases by only one-half the initial increase in reserves. C) increases by a multiple of the initial increase in reserves. D) does not change.
Jon spends all of his income on energy drinks (E) regardless of the price and his income. Derive Jon's demand equation for energy drinks, E*(p,Y)
What will be an ideal response?
What kind of table lists the quantity of a good that a person will buy at different prices?
a) demand schedule b) demand curve c) market demand schedule d) market demand curve
A general increase in the price level is called:
A. hyperinflation. B. deflation. C. inflation D. devaluation.