When the CPI increases from one year to the next:
A. inflation has occurred.
B. deflation has occurred.
C. there has not been a change in the overall price level.
D. the impact to the general standard of living is hard to measure.
A. inflation has occurred.
You might also like to view...
Given the bank reserve-holding ratio e and the quantity of bank deposits D, the demand by banks for high-powered money is
A) eD. B) e/D. C) D/e. D) e + D. E) D - e.
Dairy price supports have the effect of _____
a. decreasing the value of farmland b. increasing the value of farmland c. destroying farmland d. increasing consumption of dairy products
A Gini coefficient of zero indicates:
A. there is no income being earned. B. Computed correctly the Gini coefficient only has values greater than zero. C. perfect inequality. D. perfect equality.
According to the text, there is no such thing as a free lunch because
A. The producer must charge something to cover the cost of production. B. The government must raise taxes to pay for the lunches. C. No one would pay for lunch anymore if they could get it for free. D. Resources used to produce the lunch could be used to produce other goods and services.