If the CPI is 120, this means that
A) prices are 120 percent higher than in the reference base period.
B) prices are 0.12 times higher than in the reference base period.
C) prices are 20 percent higher than in the reference base period.
D) the inflation rate must be positive.
C
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
To ask "what causes a recession" is the same as asking
A) "why does supply meet demand?" B) "what is the link between price elasticity of demand and price elasticity of supply?" C) "why have so many individuals made errors all at once?" D) "why have price controls failed us?"
What is a synergy or cost complementarity?
a. the cost of producing different products offered by separate companies would be more expensive when produced by one company b. the cost of producing different products offered by separate companies is higher than when produced by one company c. the cost of producing different products offered by separate companies is equal to when the products are produced by one company d. None of the above
The ordering of market structures from most market power to least market power (where market power is the ability to set its own price) is:
a. monopoly, monopolistic competition, oligopoly, perfect competition. b. perfect competition, monopolistic competition, oligopoly, monopoly. c. oligopoly, monopoly, monopolistic competition, perfect competition. d. monopoly, oligopoly, monopolistic competition, perfect competition. e. monopoly, perfect competition, monopolistic competition, oligopoly.