If the average price level in 1991 was 1.20 relative to the base year in 1986, then a dollar in 1991 bought 20 percent more goods and services than a dollar in 1986
a. True
b. False
Indicate whether the statement is true or false
False
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A consequence of an incentive contract for employees is that
a. employees must incur additional risk b. employee level risk is reduced c. employer level risk is reduced d. there are no risk related consequences
Two goods are considered substitutes only if a(n):
a. decrease in the demand for one leads to a decrease in the supply of the other. b. increase in the demand for one leads to a decrease in the supply of the other. c. increase in the price of one leads to an increase in the demand for the other. d. decrease in the price of one leads to an increase in the demand for the other. e. decrease in the supply of one leads producers to switch to production of the other.
In the determination of disposable income, transfer payments are treated as if they
a. are the same as taxes. b. did not exist. c. are the opposite of taxes. d. were a constant amount.
Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment best describes the workers' situation?
A. Frictional unemployment B. Full unemployment C. Cyclical unemployment D. Structural unemployment