If the CPI was 127 in 1972 and is 324 today, then $10 in 1972 purchased the same amount of goods and services as
a. $3.92 purchases today.
b. $25.51 purchases today.
c. $207.00 purchases today.
d. $324.00 purchases today.
b
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Country A can produce 1 cello by giving up the production of 5 guitars. Country B can produce 1 guitar by giving up the production of 4 cellos. In which good does country A have a comparative advantage?
A) guitars B) cellos C) both goods D) neither good
According to the equation of exchange, if nominal GDP equals $6 trillion and the money supply equals $1 trillion, the velocity of money: a. must be 6
b. must be 1/6. c. must be 6 trillion. d. must be 1/6 trillion. e. cannot be determined unless we know the price level.
If the economy goes into a recession and incomes fall, what happens in the markets for normal goods?
A. Equilibrium price and quantity both rise. B. Equilibrium price and quantity both fall. C. Equilibrium price falls, and the quantity rises. D. Equilibrium price rises, and the quantity falls.
The aggregate supply curve is shifted to the left ( inward) by
A. an increase in the price of any input to the production process. B. a decrease in the price of any input to the production process. C. the price of any input staying the same. D. None of the above is correct.