Suppose that the inflation rate was 4 percent in 2002 and 3 percent in 2003 . This would mean that
a. the price level fell from 2002 to 2003
b. the price level fell at a faster rate in 2003 than in 2002
c. the price level rose at a faster rate in 2003 than in 2002
d. the price level rose at a slower rate in 2003 than in 2002
e. all prices in the economy rose at a rate of 3 percent in 2003
D
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If the marginal cost curve is below the average variable cost curve
A. both average total cost and average variable cost are decreasing. B. average variable cost is less than average fixed cost. C. both average total cost and average variable cost are increasing. D. average total cost is increasing but average variable cost is decreasing.
The highest valued alternative that must be given up in order to choose an option is called the:
a. opportunity cost. b. utility cost. c. scarcity expense. d. disutility option.
An increase in subsidies and other government spending during a recession is likely to result in
a. an increase in rent-seeking activity. b. an increase in productive projects and a reduction in unproductive projects. c. a decrease in the level of future taxes. d. greater reliance on profits and losses in the allocation of resources.
All other factors equal, as nominal interest rates decrease, checking account balances should:
A. remain constant. B. be converted to cash. C. increase. D. decrease.