When computing a price index, the base year is
A) the earliest year for which data are available.
B) the year that is chosen as the point of reference for comparison of prices with other years.
C) the most recent year for which data are available.
D) the most recent year in which the inflation rate was close to zero.
B
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Under long-run equilibrium in perfect competition, each firm operates at the minimum point of its average-variable-cost curve
a. True b. False Indicate whether the statement is true or false
If Mexico experiences a period of stable prices while the United States experiences rapid inflation, what will happen in Mexico?
a. an increase in aggregate supply b. a decrease in aggregate supply c. a decrease in aggregate demand d. an increase in aggregate demand
Suppose the economy is closed with national saving of $3 trillion, consumption of $10 trillion, and government purchases of $4 trillion. What is GDP?
a. $3 trillion b. $9 trillion c. $11 trillion d. $17 trillion
Estimates of the value of a college education are based on
A. present value. B. enumerated costs and benefits. C. plausible deniability. D. actual costs and benefits.