The consumer price index:
A. is always 100 in the final year of measurement.
B. helps us understand why the cost of living today compares with the cost of living at some time in the past.
C. measures the increase in the cost of the market basket relative to the cost in a given base year.
D. is a perfect measure of how prices change for all goods and services in the economy.
Answer: C
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Landon demands more sushi as his income increases. From this we can conclude that, for Landon
A) sushi is a normal good. B) sushi is a substitute good. C) sushi is a complementary good. D) sushi is an inferior good.
Which of the following is NOT classified as an advanced economy?
A) Hong Kong B) South Korea C) Russia D) Australia E) the United Kingdom
A firm should make an investment if the expected return is greater than
A) the marginal cost of the investment. B) the fixed cost of the investment. C) the opportunity cost of the investment. D) the expected rate of inflation.
Other things the same, an increase in aggregate demand reduces unemployment and raises inflation in the short run
a. True b. False Indicate whether the statement is true or false