Suppose the consumer price index (CPI) for a given year is 150 . This means the rate of inflation for the given year is 50 percent
a. True
b. False
Indicate whether the statement is true or false
False
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A person's sensitivity to a price change for a good, such as breakfast cereal, depends on all of the following except the
a. price of the good b. cost of producing the good c. person's income d. availability and closeness of substitutes e. time the person has to adjust to the price change
Which of the following is correct?
a. The Fed has very good control over the money supply and bank reserves. b. The Fed has very poor control over the money supply and bank reserves. c. The Fed has very good control over bank reserves but not over the money supply. d. The Fed has very good control over the money supply but not over bank reserves.
Which of the following would decrease the price of packaged hot dogs?
A. A decrease in the price of hot dog buns, a complement to packaged hot dogs. B. An increase in the price of hamburger meat, a substitute for packaged hot dogs. C. A technological advance that lowers the cost of producing packaged hot dogs. D. An increase in the price of beef used to produce packaged hot dogs.
Exhibit 5-1 Demand curve
?
In Exhibit 5-1, the demand curve between points a and b is:
A. elastic. B. inelastic. C. unit elastic. D. perfectly elastic.