As new goods and services become available the basket of goods used to calculate the CPI:
A. immediately changes to reflect them.
B. never changes to reflect them.
C. doesn't change until 75 percent of urban consumers use them.
D. periodically is updated in order to reflect the changes.
Answer: D
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The demand for money curve shows the relationship between the quantity of money demanded and
A) real GDP. B) the inflation rate. C) the real interest rate. D) the price level. E) the nominal interest rate.
Compared to perfectly competitive firms, the demand curve for a monopolist will be
A) as elastic. B) more elastic. C) less elastic. D) perfectly elastic.
If both the supply and demand curves shift to the left, then we can conclude that there will be a(n): a. increase in the equilibrium quantity sold. b. decrease in the equilibrium quantity sold. c. increase in the equilibrium price
d. decrease in the equilibrium price.
In the long run, if the inflation rate is positive, a currency depreciates to maintain purchasing power parity
a. True b. False