What is the Consumer Price Index (CPI)?
What will be an ideal response?
The Consumer Price Index is a measure which tracks the cost of living over time. The CPI measures the cost of a fixed basket of goods chosen to represent the consumption pattern of a typical consumer.
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Explain what will happen to the equilibrium real wage and quantity of labor for each of the following scenarios, and use a graph of the aggregate labor market to show the changes
a. The government decreases income tax rates. b. The skill level of workers increases. c. A hurricane destroys a large portion of the capital stock. d. Workers increase their preference of labor over leisure. e. A technological change occurs that increases the productivity of all workers, and at the same time the government increases income tax rates. f. The overall skill level of workers decreases, and at the same time household wealth increases.
The worst hyperinflation ever recorded happened in:
A. Hungary. B. Zimbabwe. C. Brazil. D. Germany.
In 2008, increased gasoline prices led to increased corn prices primarily because
A. gasoline is a good substitute for corn oil, and corn oil is an input to gasoline production. B. ethanol is a good substitute for gasoline, and corn is an input to ethanol production. C. corn oil is a good substitute for gasoline, and ethanol is an essential input to corn production. D. corn production and gasoline production are both concentrated in the high-cost Midwest.
Given the following hypothetical data where C = $3,000; I = $1,200; G = $2,000; X ? M = ?$500; depreciation = $200; transfer payments = $800, net domestic product is _____
a. $5,500 b. $5,700 c. $6,200 d. $6,400 e. $6,900