By using the market basket approach:
A. it allows us to see how cost of living is affected by the changing prices of different goods relative to how much of each good you buy.
B. we get a moreaccurate picture of the changing cost of living than by simply averaging the changing prices of goods listed in the market basket.
C. we get a clearer picture of the changing cost of living than by averaging the changing prices of all goods and services produced.
D. All of these statements are true.
D. All of these statements are true.
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What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?
A) The price will fall and the effect on the quantity is uncertain. B) The quantity will increase and the effect on the price is uncertain. C) The quantity will decrease and the price will rise. D) The quantity will increase and the price will remain unchanged.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
In the graph showing the data for the short-run and long-run Phillips curve from 1961–1973, movement along the short-run Phillips curve is represented by the move from ______.
a. Point A to Point B
b. Point A to Point C
c. Point B to Point C
d. Point C to Point A
Refer to the table shown. If total output is 41, level of employment is:Number of workersMarginal product of workers1527384105116775839010?1
A. 4. B. 5. C. 6. D. 7.