If the consumer price index (CPI) rises over a year from 220 to 230, then the inflation rate is 10 percent
a. True
b. False
Indicate whether the statement is true or false
False
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If the national incomes of our trading partners increase, then our aggregate demand ________.
A. decreases because consumption decreases B. increases because net exports increase C. decreases because net exports decrease D. increases because consumption increases
Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Tracy should specialize in sandwiches and smoothies. B. Dan should specialize in sandwiches, and Tracy should specialize in smoothies. C. Dan should specialize in both sandwiches and smoothies. D. Dan should specialize in smoothies, and Tracy should specialize in sandwiches.
In the short run, the demand for gasoline today is
A. unit elastic. B. very inelastic. C. very elastic.
Money spent on the purchase of a new house is included in the GDP as a part of:
a. Personal saving b. Investment c. Personal consumption expenditures d. The consumption of private fixed capital