The CPI in 1931 equaled 0.15. The CPI in 1932 equaled 0.14. The rate of inflation between 1931 and 1932 was ________ percent.
A. 1.4
B. -7.1
C. -6.7
D. 6.7
Answer: C
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When there is a recession (a fall in output) and prices are increasing, and this situation is caused by adverse supply shocks, the term economists use to describe it is
A) stagflation. B) inflation. C) aggregate shifts. D) stagnation.
By summing the dollar value of all market transactions in the economy we would:
a) determine the market value of all resources used in the production process. b) obtain a sum substantially larger than the GDP. c) determine value added for the economy. d) measure GDP.
Price discrimination exists when
A) a firm charges different buyers different prices for its product but the costs are the same. B) each buyer is treated equally. C) sales are made below cost. D) a firm charges each buyer a price of the product in proportion to its costs.
Fiat money means
A) only currency counts as money. B) the money can be converted into gold. C) the government has decreed that something is money. D) Italian currency. E) money's value does not change.