The CPI in November 2016 was equal to 241.4. This means that prices in November 2016 were
A. 241.4% higher than in 1982-1984.
B. 120.7% higher than in 1982-1984.
C. 2.414% higher than in 1982-1984.
D. 141.4% higher than in 1982-1984.
Answer: D
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Consider the following statement: "Real GDP and potential GDP are always equal." Is this statement true or false? Explain your answer
What will be an ideal response?
If something is used as a measure of value, then a necessary condition is that it must
a. serve as a yardstick for measuring the value of other goods b. be a precious metal, such as gold or paper money c. be convertible into gold d. be used in barter exchange e. be accepted as payment for any purchase
Suppose that a steel factory emits a certain amount of air pollution, which constitutes a negative externality. If the market does not internalize the externality,
a. the supply curve would adequately reflect the marginal social cost of production. b. consumers will be required to pay a higher price for steel than they would have if the externality were internalized. c. the market equilibrium quantity will not be the socially optimal quantity. d. producers will produce less steel than they otherwise would if the externality were internalized.
If expectations of inflation are greater than actual inflation, the short-run Phillips curve will eventually shift upward.
Answer the following statement true (T) or false (F)