If the market basket of goods and services that the Commerce Department uses to calculate the CPI were to decline from $30,000 in the base year to $15,000 in the current year, the current year's CPI would be
A. 300.
B. 150.
C. 100.
D. 50.
E. 0.
D. 50.
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If the AS and the AD curve intersect at a level of real GDP that exceeds potential GDP, then the appropriate monetary policy is one that ________ the federal funds rate and ________ aggregate demand
A) raises; increases B) lowers; decreases C) raises; has no effect on D) lowers; increases E) raises; decreases
When a firm produces more output using the same inputs or the same output using fewer inputs we say that the firm
A) experiences positive technological change. B) will hire more workers in order to produce more output. C) experiences an increase in demand. D) is operating in the short run.
If the world terms of trade equal those of country F, then
A) country H but not country F will gain from trade. B) country H and country F will both gain from trade. C) neither country H nor F will gain from trade. D) only the country whose government subsidizes its exports will gain. E) country F but not country H will gain from trade.
According to the equation of exchange, if V = 5, P = 100, and Q = 10, the M is:
a. 20. b. 10. c. 500. d. 1,000. e. 200.