If the price index was 90 in year 1, 100 in year 2, and 95 in year 3, then the economy experienced
a. 10 percent inflation between years 1 and 2 ,and 5 percent inflation between years 2 and 3.
b. 10 percent inflation between years 1 and 2, and 5 percent deflation between years 2 and 3.
c. 11.1 percent inflation between years 1 and 2, and 5 percent inflation between years 2 and 3.
d. 11.1 percent inflation between years 1 and 2, and 5 percent deflation between years 2 and 3.
d
You might also like to view...
Joe deposits $200 in currency into his checking account at a bank. This deposit is treated as:
A. A subtraction of $200 from the money supply because the $200 in currency is no longer in circulation B. An addition of $200 to the money supply because of the creation of a checkable deposit of $200 C. An addition of $200 to the money supply because the bank holds $200 in currency and the checking account has been increased by $200 D. No change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits
Answer the following statements true (T) or false (F)
1. In a mature industry, all firms operate with constant returns to scale. 2. On a cost/output graph, the average fixed cost is constructed as a straight horizontal line. 3. Marginal cost crosses the average variable cost and the average total cost at their lowest points. 4. The average fixed cost remains constant even in the long run. 5. Marginal cost is related inversely to the marginal product.
During the course of a week, McDonald's has enough time to hire or layoff workers, but it does not have enough time to expand its kitchen or add an additional seating area. In this situation, McDonald's:
a. has no fixed costs. b. is in the short run. c. suffers an economic loss. d. earns a large profit.
Current equilibrium output equals $2,500,000, potential output equals $2,600,000, and the marginal propensity to consume equals 0.75. Under these conditions, a Keynesian economist is most likely to recommed
A) decreasing taxes by $25,000 B) decreasing taxes by $100,000 C) increasing government spending by $25,000 D) increasing government spending by $33,333 E) increasing government spending by $100,00