The inflation rate is
A. the percentage increase in the price index from one year to the next as well as the price index in one year minus the price index in the previous year.
B. the price index in one year minus the price index in the previous year.
C. the percentage increase in the price index from one year to the next.
D. the percentage increase in the price index from the base year.
Answer: C
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Which of the following would cause the LM curve to shift to the right?
A) increased money supply B) a larger U.S. capital account deficit C) a depreciation of the dollar D) lower level of U.S. income
Using Figure 2 below, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE3 might be:
A. consumption spending increases.
B. investment decreases.
C. imports increase.
D. exports decrease.
Suppose the goal of a union is to maximize the total income of all workers it represents. In this case it will probably aim for a wage at which the elasticity of demand for workers is
a. 0. b. infinite. c. 1. d. ranging from 2 to 5.
Long term unemployment causes all of the following except
a) depreciation of human capital b) reduced probability of reemployment c) reduced intensity of job search d) increased unemployment insurance replacement rates e) discouraged worker effects and labor market withdrawal