February 2010, the price of gasoline in the Florida was $2.629 per gallon and the CPI was 202.4 with a base period of 1982 to 1984. What was the real price of gasoline per gallon in base period dollars?
A) $1.00 per gallon
B) $5.32 per gallon
C) $1.29 per gallon
D) $1.809 per gallon
E) $2.629 per gallon
C
You might also like to view...
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
According to the law of demand, the quantity demanded of a good is related to
A) the average price of all goods. B) income. C) any factor that affects the decision of an individual consumer but not the market. D) the relative price of that good.
Which of the following explains why the government should not increase spending by the entire amount of the AD shortfall to move the economy to full employment?
A. The multiplier process will contribute to an additional increase in aggregate demand that will cause an inflationary gap. B. The price level is constant. C. The government can increase taxes to create an additional increase in aggregate demand. D. Price level changes will make up for the difference between the fiscal stimulus and the AD shortfall.
In the late 1990's, the Wall Street Journal suggested that the stock market is grossly undervalued even while it is breaking all time records monthly. Its argument was that the risk factor of stock was being reduced dramatically due to increased stability in the economy and the prospects for continued long-term growth. Illustrate how this assumption about the economy leads to a rational bidding up of stock prices.
What will be an ideal response?