The price index was 150 in the first year, 142.5 in the second year, and 138.2 in the third year. The economy experienced
a. 5.0 percent deflation between the first and second years, and 3.0 percent deflation between the second and third years.
b. 7.5 percent deflation between the first and second years, and 4.3 percent deflation between the second and third years.
c. 5.3 percent inflation between the first and second years, and 4.1 percent inflation between the second and third years.
d. 7.5 percent inflation between the first and second years, and 4.3 percent inflation between the second and third years.
a
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A wealth tax can be justified because it
A. helps to correct certain (inevitable) problems that arise in the administration of an income tax. B. the higher an individual's wealth, the greater his or her ability to pay, other things - including income - being the same. C. reduces the concentration of wealth, which is desirable socially and politically. D. are payments for benefits that wealth holders receive from government. E. all of these answer options are correct.
In the presence of the crowding out effect, the purchase of Treasury bonds by the government will result in:
a. an increase in the interest rates. b. a decrease in the price of bonds. c. a decline in the private sector spending. d. an increase in the private sector spending. e. a decrease in the rate of inflation.
According to the monetarists, inflation is primarily caused by an increase in the money supply
a. True b. False Indicate whether the statement is true or false
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C