Suppose that last year, the price of strawberries was $2 and the price of milk was $1. This year, the price of milk is $2 and the price of strawberries is $1. Which of the following statements is true?
A) The CPI does not change because the change in the two prices is the same.
B) The CPI increases because milk is more expensive.
C) The CPI decreases because strawberries are cheaper.
D) The CPI might increase or decrease depending on the quantities in the CPI market basket.
E) The change in the CPI depends how the market basket changed between the two years.
D
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A demand curve is also a willingness-and-ability-to-pay curve
Indicate whether the statement is true or false
The efficient level of college enrollment in Inland is
A) 0.6 million students per year. B) 0.7 million students per year. C) 0.8 million students per year. D) 0.5 million students per year.
Will a rightward shift in aggregate demand result in long-run economic growth? Why?
What will be an ideal response?
At a price of $299.95, the manufacturer of a portable gas-powered generator is willing to produce 19,000 units per quarter. At a price of $349.95, it is likely that the manufacturer will be willing to produce
a. less than 19,000 units per quarter. b. It is impossible to predict the effect of a higher price on the number of units of a product that a firm will be willing to produce. c. more than 19,000 units per quarter. d. 19,000 units per quarter.