Consumers in an economy buy only three general types of products: A, B, and C. Changes in the prices of these items over a period are shown below: Average Price per UnitProductQuantityYear 1Year 2A10$10$8B152022C85055Using year 1 as the base year, the country's price index in year 2 is ________.
A. 100.0
B. 105.2
C. 106.3
D. 103.9
Answer: C
You might also like to view...
________ is the market value of production generated by the factors of production possessed or owned by the residents of a particular nation
A) Gross domestic product B) Total Market Value C) Gross National Product D) Net domestic product
In the figure above, if the minimum wage rate is $8 per hour, then after taking account of resources lost in job search, the workers' surplus is the area ________ and the firms' surplus is the area ________
A) e; c B) d; b C) a; f D) f; a E) a + b + c + d + e; f
Which of the following changes aggregate supply and shifts the aggregate supply curve? i. change in the price level ii. change in potential GDP iii. change in the money wage rate
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
The price of a barrel of oil doubled between 2007 and the middle of 2008. To make matters worse, a financial crisis hit the U.S. economy starting in August of 2007. Which of the following is TRUE of the United Kingdom's experience?
A) The increase in the price of oil immediately shifted the AS curve to the left. B) The financial crisis did not take hold right away so the AD curve did not immediately shift. C) Eventually, the Lehman Brothers bankruptcy caused a negative demand shock leading to a further fall in output and an increase in the unemployment rate. D) All of the above. E) None of the above.