When the Consumer Price Index increases from 100 to 120
a. more money is needed to buy the same amount of goods, so the value of money falls.
b. more money is needed to buy the same amount of goods, so the value of money rises.
c. less money is needed to buy the same amount of goods, so the value of money falls.
d. less money is needed to buy the same amount of goods, so the value of money rises.
a
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Chain-weighted price indices are constructed such that
A) all years' levels of GDP are directly related to a base year level of GDP. B) prices of one good can be directly compared with prices of other goods. C) prices in different years can be directly compared with one another. D) prices in different economies can be directly compared with one another.
The price of iPhones has fallen dramatically. Which of the following is likely to happen?
A) The quantity of iPhones supplied will increase. B) The supply of iPhones will increase. C) The quantity of iPhones supplied will decrease. D) The supply of iPhones will decrease.
In the liquidity preference framework, a one-time increase in the money supply results in a price level effect. The maximum impact of the price level effect on interest rates occurs
A) at the moment the price level hits its peak (stops rising) because both the price level and expected inflation effects are at work. B) immediately after the price level begins to rise, because both the price level and expected inflation effects are at work. C) at the moment the expected inflation rate hits its peak. D) at the moment the inflation rate hits it peak.
Gross domestic product is
a. the market value of all goods and services exchanged within a country during a time period. b. the market value of all domestic assets, regardless of whether they are owned by citizens or foreigners. c. the compensation received during a period for labor services plus interest, rents, and corporate profits. d. the market value of final goods and services produced within a country during a time period.