Explain how the prices of goods and services used in the CPI differ from the prices used in the PPI
The CPI focuses on goods and services bought by the typical consumer, while the PPI focuses on goods and services bought by firms.
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Suppose that real GDP grows by 3 percent a year, the quantity of money grows 6 percent a year, and velocity grows by 1 percent. In the long run, the inflation rate equals
A) 12 percent. B) 9 percent. C) 10 percent. D) 4 percent. E) 5 percent.
Aggressive policy measures taken by the monetary authority during the 2007-2008 financial crisis in the United States resulted in:
a. avoidance of a recession caused by a tight credit market. b. almost no transmission of the monetary stimulus to market rates of interest, increased lending, and expansion of GDP. c. lower rates of interest and increased investment activity. d. an increase of real GDP and a fall in the core unemployment rate.
We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will decrease when
A. supply and demand for a product simultaneously decrease. B. supply decreases and demand increases. C. supply increases and demand decreases D. supply and demand for a product simultaneously increase.
Refer to the table above.below. At a price of $3, the total revenues of sellers will be:
Answer the question based on the following table which shows a demand schedule.
A. $18
B. $12
C. $45
D. $5