If the CPI in 2004 is 200, and in 2005 the CPI is 180, the rate of inflation from 2004 to 2005 is
A) 20%.
B) 10%.
C) 0%.
D) -10%.
D
You might also like to view...
In the Classical system, the total output of goods and services and total employment are determined by all of the following except
A) the interest rate. B) the labor force. C) the supply of capital. D) existing technology.
Which of the following explains why monopolists lack allocative efficiency?
a. Because they produce at the quantity where P = MC b. Because they produce at the quantity where P > MC c. Because they invest too much in research and development d. Because they use intellectual property as barriers to entry
Suppose banks desire to hold no excess reserves and that the Fed has set a reserve requirement of 6 percent. If you deposit $8,000 into First Raven Bank,
a. First Raven's required reserves increase by $480. b. First Raven will be able to lend out $7,520. c. First Raven's assets and liabilities both will increase by $8,000. d. All of the above are correct.
Which of the following shifts the long-run Phillips curve left?
a. both an increase in the inflation rate and a decrease in the minimum wage rate b. an increase in the inflation rate, but not a decrease in the minimum wage rate c. a decrease in the minimum wage rate, but not an increase in the inflation rate d. neither a decrease in the minimum wage rate nor an increase in the inflation rate