Last year the CPI was 177.1 and this year the CPI is 180.9. What was the inflation rate between these two years?
What will be an ideal response?
The inflation rate equals [(180.9 - 177.1 ) ÷ 177.1] × 100 = 2.1 percent.
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A currency union would be beneficial to nations with symmetrical demand shocks so that a coordinated monetary policy is possible. Comparing the Eurozone with the United States, the finding is:
A) the Eurozone nations and the U.S. states are markedly different in the correlation between growth rates of GDP. B) the Eurozone nations and the U.S. states are quite similar in terms of correlation between growth rates of GDP. C) the Eurozone nations have higher growth rates of GDP in their member states, whereas the United States exhibits lower growth rates. D) the Eurozone is much more diverse in terms of its growth in GDP.
A perfectly competitive firm will be profitable if price at the profit-maximizing quantity is above:
A. ATC. B. MC. C. AFC. D. AVC.
Your friend tells you that he expects many people to stand at football games.
A. empiricism, because your? friend's prediction can be tested using data. B. equilibrium, because your friend presumes everyone is behaving optimally. C. optimization, because you will need this information to identify your best feasible option. D. equilibrium, because it is a prediction rather than an observation.
There are hundreds of companies in the business of providing natural gas to residential users. For the most part, these local gas companies each only serve their local community, so they buy in very competitive markets but sell locally and without competitors. The retail market is therefore likely to be
A. perfect competition. B. oligopoly. C. monopolistic competition. D. monopoly.