The BLS reported that the CPI in July 2010 was 226 . This news tells you that _______
A. consumer prices during July were 226 percent higher than they were during the base year
B. the CPI inflation rate in July was 26 percent a year
C. consumer prices rose by 26 percent during the month of July
D. the prices of consumption goods and services have risen, on average, by 126 percent since the base year
D In the reference base period the CPI equals 100, so if it is 226 in July 2010, prices have risen, on average, 226 – 100, or 126 percent.
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According to the natural rate hypothesis, in the short run an increase in the inflation rate brings
A) an increase in the natural unemployment rate. B) an increase in the unemployment rate. C) no change in the unemployment rate. D) a decrease in the unemployment rate. E) a decrease in the natural unemployment rate.
Adverse selection is created by
A) incentives to change behavior after two parties have reached an agreement. B) risk. C) lump-sum taxes. D) private information.
Refer to the above table. What does the marginal revenue product equal when 27 workers are hired a week?
A) $1040 B) $216 C) $16.25 D) $8
The aggregate supply curve is vertical at the level of real GDP that corresponds to the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false