The price of a gallon of gasoline was $1.35 in 2000 when the CPI equaled 1.68. The cost of a gallon of gasoline was $2.38 in 2016 when the CPI equaled 2.40. The real cost of a gallon of gasoline between 2000 and 2016:
A. decreased.
B. may have either increased or decreased.
C. remained constant.
D. increased.
Answer: D
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Changes in autonomous consumption could be the result of:
A. changes in inflation. B. changes in disposable income. C. changes in housing prices. D. changes in the mpc.
Philip purchased one million dollars' worth of New York City bonds. His interest earnings were $100,000 . His total federal tax on this income will be
a. $40,000 . since his marginal tax rate was 40 percent. b. $40,000 . since only 40 percent of capital gains is taxed. c. zero. d. very small, since he had a clever accountant who knew how to use loopholes.
When costs that vary with the level of output are divided by the output, you have calculated:
A. total changing cost. B. total fixed cost. C. average fixed cost. D. average variable cost.
Suppose that in 2010, the producer price index increases by 1.5 percent. As a result, economists most likely will predict that
a. GDP will increase in 2011.
b. the producer price index will increase by more than 1.5 percent in 2011.
c. interest rates will decrease in the future.
d. the consumer price index will increase in the future.