When we compare the records of the CPI and the PCE price index over time, the
A) two are very different in magnitude.
B) PCE price index tends to exceed the CPI.
C) CPI tends to exceed the PCE price index.
D) two measures are identical.
E) CPI tends to exceed the PCE price index when inflation is high, and the PCE price index tends to exceed the CPI when inflation is low.
C
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Refer to the table above. Which of the following statements is true?
A) There is a surplus of 10 notebooks in the market when the price of one notebook is $8. B) There is a shortage of 4 notebooks in the market when the price of one notebook is $6. C) There is a shortage of 12 notebooks in the market when the price of one notebook is $4. D) There is a surplus of 4 notebooks in the market when the price of one notebook is $5.
From an economist's viewpoint, discrimination occurs if there is a wage differential between two groups when there is no difference in the marginal revenue product of the two groups
a. True b. False Indicate whether the statement is true or false
We can use the theory of consumer choice to analyze
a. why most demand curves slope downward. b. the tradeoff between work and leisure c. how interest rates affect household saving. d. All of the above are correct.