Constructing the CPI involves which of the following stages? i. conducting the monthly price survey ii. converting the CPI to an international index iii. selecting CPI market basket
A) i only
B) ii only
C) iii only
D) i and iii
E) i, ii, and iii
D
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Assuming a simultaneous reduction in income taxes and transfer payments of $50 billion, then aggregate disposable income will
a. be higher than before. b. be lower than before. c. remain constant. d. None of the above
In the typical AC curve, the downward-sloping part is attributable to
a. spreading fixed costs over larger outputs and increasing returns to the variable inputs. b. declining administrative costs as output increases. c. falling fixed costs. d. rising total product.
Assume an economy experienced a positive rate of inflation between 2003 and 2004 and again between 2004 and 2005 . However, the inflation rate was higher between 2004 and 2005 than it was between 2003 and 2004 . Which of the following scenarios is consistent with this assumption?
a. The CPI was 100 in 2003, 110 in 2004, and 105 in 2005. b. The CPI was 100 in 2003, 120 in 2004, and 135 in 2005. c. The CPI was 100 in 2003, 105 in 2004, and 130 in 2005. d. The CPI was 100 in 2003, 90 in 2004, and 88 in 2005.
The relationship between price and quantity demanded, ceteris paribus, is
A. quantity supplied. B. demand. C. supply. D. equilibrium.