If you currently make $25,000 a year and the CPI rises from 110 today to 150 in five years, then you need to be making $43,333.33 in five years to have kept pace with consumer price inflation
a. True
b. False
Indicate whether the statement is true or false
False
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The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon. Between Year 1 and Year 2, nominal GDP grew by
A) 60.0%. B) 65.5%. C) 83.3%. D) 190.0%.
Selling a product at different prices when the price difference is unrelated to costs is a practice known as
A) price fixing. B) price monopolization. C) price discrimination. D) price differentiation.
The key feature due to which unexpected inflation decreases the unemployment rate is that:
a. expectations are formed irrationally. b. reservation wages of workers are fixed. c. workers behave irrationally. d. firms are greedy. e. government policy is time consistent.
Suppose that Figure 7.5 shows a monopolist's demand curve, marginal revenue, and its cost. At the profit-maximizing output level and price, the consumer surplus would be:
A. $2,450. B. $1,225. C. $612.50. D. $262.50.