Suppose the price of a gallon of ice cream rises from $4 to $5 and the price of a can of coffee rises from $2 to $2.50 . If the CPI rises from 150 to 177, then people likely will buy
a. more ice cream and more coffee.
b. more ice cream and less coffee.
c. less ice cream and more coffee.
d. less ice cream and less coffee.
d
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The development of a low-cost synthetic fuel is expected to cause a decrease in the price of oil
a. True b. False Indicate whether the statement is true or false
If G = T, then regardless of whether there is unemployment or inflation (or both), the budget is
a. balanced even though the economy may not be in equilibrium b. in deficit c. in surplus d. contractionary e. balanced and the economy is in equilibrium
Aggregate income includes all of the following except:
A. transfer payments. B. interest. C. employee compensation. D. rent.
In 2018, inflation exceeded expected inflation. In 2019, expected inflation exceeded inflation. Therefore the real interest rate was ________ than the expected real interest rate in 2018 and the real interest rate was ________ than the expected real interest rate in 2019.
A. less; greater B. greater; greater C. greater; less D. less; less