A Consumer Price Index of 120 for a certain year means that the average price of consumer items in that year was
A. 20% higher than the average price of the preceding year.
B. 120% higher than the average price in the base period 1982-84.
C. 20% higher than the average price in the base period 1982-84.
D. about $120 per basket of consumer goods and services.
Answer: C
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According to the textbook, the Fed's information is fairly imprecise in regards to all of these things except:
A. actual real GDP B. potential GDP C. size of output gaps D. speed of the effects of its actions
Use the figure below to answer the next question. 
Growth of production capacity is shown by the
A. shift from CD to AB. B. movement away from point B and toward point A. C. movement away from point A and toward point B. D. shift from AB to CD.
When a price support is set above the equilibrium price, producers ________ the quantity supplied and consumers ________ the quantity demanded
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) do not change; do not change
Marginal revenue product is increasing as
A. the marginal physical product is increasing, other things equal. B. the amount of time is increasing, other things equal. C. the revenue from sales decreases, other things equal. D. the revenue from one more unit produced falls, other things equal.