The CPI in 1990 was 131, and the CPI in 2010 was 218. If you earned a salary of $40,000 in 1990, what would be a salary with equivalent purchasing power in 2010?
A) $45,977
B) $66,565
C) $87,200
D) $143,486
Answer: B
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In comparing the changes in actual budget surplus and the structural surplus between 1993 and 1999, it is clear that the
a. actual surplus rose less than the structural surplus. b. actual surplus and the structural surplus rose about the same. c. actual surplus rose much more than the structural surplus. d. tax increases of 1993 decreased the structural surplus more than they decreased the actual surplus.
The aggregate demand and aggregate supply model implies monetary neutrality
a. only in the short run. b. only in the long run. c. in both the short run and the long run. d. in neither the short run nor long run.
Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
A) a smaller trade sector B) a higher rate of investment C) higher tax rates D) greater use of taxation to transfer income from the rich to the poor
Many banks offer accounts featuring “Automatic Transfer from Savings” allowing customers to overdraw checking accounts and the bank will transfer enough funds to cover the check automatically. Most likely, what is the effect of this feature on velocity?
A. Velocity will decrease. B. Velocity will increase. C. Velocity will remain constant. D. Velocity is unrelated to saving accounts.