If the price of gasoline has increased from $3 per gallon to $4 per gallon at the same time that the overall price index increased from 200 to 266.66, then you know that the inflation adjusted price of gasoline has

A. remained constant.
B. increased.
C. decreased.


Answer: A

Economics

You might also like to view...

An open market sale

A) decreases the price of Treasury securities and also decreases their yield. B) increases the price of Treasury securities and decreases their yield. C) increases the price of Treasury securities and also increases their yield. D) decreases the price of Treasury securities and increases their yield.

Economics

If outcomes are ________, exactly one of the outcomes will occur and the probabilities add up to ________

A) probabilistic; between 0 and 1 B) exhaustive and mutually exclusive; 1 C) exhaustive; 1 D) mutually exclusive; between 0 and 1

Economics

If a competitive firm has to pay a lump sum tax, it will produce less

Indicate whether the statement is true or false

Economics

If a firm experiencing "economies of scale" decreases its output, its long-run average cost will decrease

a. True b. False

Economics