Calculate the rate of inflation between Year 1 and Year 2. The price index in Year 1 was 124.0. It was 130.7 in Year 2.
What will be an ideal response?
Subtract 130.7 minus 124.0 = 6.7; Divide 6.7 by 124.0 (since that is the index in the comparison year in this problem). 6.7/124 = 0.0540; Multiply 0.0540 by 100 to change to percentage terms and get 5.4% as the rate of inflation between Year 1 and Year 2.
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A) is harmed by having too many property rights. B) is created when the nation imposes many regulations on businesses. C) is founded, in part, on the rule of law. D) is not important for nations to grow. E) must come from a democratic government.
In the dynamic aggregated demand and aggregate supply model, inflation occurs if
A) SRAS shifts faster than AD. B) AD shifts slower than SRAS. C) LRAS shifts faster than AD. D) AD shifts faster than SRAS.
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Suppose a legislature passes a law that mandates a 50% cut in toxic emissions. What type of analysis would most likely be used to determine how to implement this policy at the lowest cost?
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