If the cost of the CPI market basket at current period prices is $1000 and the cost of the CPI market basket at base period prices is $250, the CPI is
A) 2.50. B) 400. C) 250. D) 100. E) 4.0.
B
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An arrangement in which Kathleen sells some of her barley when it is planted, with the promise to deliver it and receive payment after it is harvested, is called
A) a savings contract. B) a deferred private bond. C) a futures contract. D) a commodity transfer.
In a free market there are significant restrictions on how a good or service can be produced or sold
Indicate whether the statement is true or false
What is the best inference about the impact of a decrease in transportation costs?
a. The demand and supply curves will shift out, which will increase quantities of goods. b. The supply curve will shift out, which will lead to lower prices to consumers. c. Farmers will earn a smaller share of the selling price of their crops. d. The demand curve will shift out, which will lead to higher prices and quantities of goods.
Keynesian economists believe that
a. an increase in the money supply leads to a higher price level b. price changes adjust the value of the goods produced to the money supply c. velocity and output are constant in the short run d. an increase in production, if the money supply is held constant, will cause velocity to increase e. an increase in the money supply leads to a decrease in nominal GDP