Answer the following questions true (T) or false (F)
1. Currently, the base year for the CPI is the average of prices in the years 1982 to 1984.
2. To obtain real average hourly earnings, nominal average hourly earnings are multiplied by the CPI.
3. The CPI in 2010 was 218, while the CPI in 1980 was 82. If you had $5,000 in 1980, its equivalent purchasing power in 2010 would be $10,850.
1. TRUE
2. FALSE
3. FALSE
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Using a figure describing both the U.S. money market and the foreign exchange market, analyze the effects of a temporary increase in the European money supply on the dollar/euro exchange rate
What will be an ideal response?
An important function of the regional Federal Reserve Banks is
A) setting reserve requirements. B) clearing checks. C) determining monetary policy. D) setting margin requirements.
Total profit is maximized where
A. MR = MC. B. marginal profit is zero. C. the slope of the marginal profit curve is zero. D. All of the responses are correct.
What happens to consumer surplus as price falls along a given demand curve?
a. It always increases. b. It always decreases. c. It never changes. d. It increases only if price increases just a little. e. It depends on the elasticity of demand and supply.