When the ratio of a housing price index to the GDP deflator is rising, this means that housing prices are rising faster than the overall price level.
Answer the following statement true (T) or false (F)
True
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The tables above give the purchases of an average consumer in a small economy. (These consumers purchase only shampoo and pizza.) Suppose 2015 is the reference base period
a) What is the cost of the CPI basket in 2015 and 2016? b) What is the CPI in 2015 and in 2016? c) What is the inflation rate between 2015 and 2016?
World War I (1914–18) caused inflation because
(a) war production stressed an economy already operating close to full employment. (b) fiscal policy mandated it. (c) the Federal Reserve System required it. (d) inflation always occurs in times of war.
Between 2000 and 2013, the world added more than 100 billion tons of carbon to the atmosphere. Between 1998 and 2013, the earth's temperature
a. rose by approximately 3 degrees Fahrenheit. b. rose by approximately 2 degrees Fahrenheit. c. showed no significant change. d. fell by 1.4 degrees Fahrenheit.
Refer to the information provided in Figure 27.3 below to answer the question(s) that follow.
Figure 27.3Refer to Figure 27.3. The aggregate supply curve shifting from AS1 to AS2 will cause
A. hyperinflation. B. demand-pull inflation. C. deflation. D. cost-push inflation.