If the total expenditures of a typical family equaled $40,000 per year in 2015 and the exact same basket of goods and services cost $45,000 in the year 2017, the family's cost of living:
A. increased by 12.5 percent.
B. decreased by 11.1 percent.
C. decreased by 12.5 percent.
D. increased by 11.1 percent.
Answer: A
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What will be an ideal response?
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A) a decrease in net exports. B) an increase in government expenditure. C) a decrease in the money price of resources. D) an increase in the price of oil. E) a decrease in the quantity of money.
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Indicate whether the statement is true or false