At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is the inflation rate over this year?
A) 6 percent
B) 10 percent
C) 12 percent
D) None of the above answers are correct because more information is needed to calculate the inflation rate.
B
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Kaitlyn and Larissa have formed a dog bathing and grooming business. The number of dogs they can bathe or groom in any given day is depicted in Table 2.1. As they groom more dogs, the opportunity cost of grooming additional dogs
A) rises. B) falls. C) remains constant. D) depends on the prices being charged.
Broadly speaking, Social Security redistributes incomes from high-to low-income individuals, from men to women, and from young to old.
A. True B. False C. Uncertain
Costs are related to output because
A) output is variable over the long run. B) inputs are related to output. C) some inputs are fixed. D) inputs must be paid their opportunity costs.
One reason the theory of purchasing power parity may not explain price differences between countries is:
A. nominal exchange rates are flexible. B. some products do not trade. C. inflation rates differ across countries. D. real exchange rates are almost impossible to calculate.