A) automatically implies that, on average, everyone is better off because prices have fallen. B) would negatively affect producers but positively affect consumers because producers must accept lower prices. C) might easily make both producers and consumers better off because consumers might lose jobs due to falling prices and profit margins, and the falling profit margins would negatively impact producers. D) might make you better off if your nominal wages fall more rapidly than prices. E) automatically occurs when there are more goods with falling prices than there are goods with increasing prices. A) automatically implies that, on average, everyone is better off because prices have fallen. B) would negatively affect producers but positively affect consumers because producers must accept lower prices. C) might easily make both producers and consumers better off because consumers might lose jobs due to falling prices and profit margins, and the falling profit margins would negatively impact producers. D) might make you better off if your nominal wages fall more rapidly than prices. E) automatically occurs when there are more goods with falling prices than there are goods with increasing prices.

Exam 8: The Price Level and Inflation

Donna Newton made $0.30 per hour in 1946 at a small restaurant in Clearfield,Pennsylvania.If the consumer price index (CPI) was 18.3 in 1946 and 202.4 in 2011 and the legal minimum wage in 2011 was $7.25,then:

(Multiple Choice)

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Question 121

What is the consumer price index (CPI)?

(Multiple Choice)

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Question 122

Typically the largest percentage category in the consumer price index (CPI) is:

(Multiple Choice)

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Question 123

The signing of long-term wage and price agreements and the relationship to inflation most likely raises the issue of:

(Multiple Choice)

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Question 124

You have to pay costs for your business now but you also have to enter into long-term contracts to repay loans in the future.If inflation occurs,the best term for the problem that occurs in this case is:

(Multiple Choice)

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Question 125

Using the table below,compute the consumer price index (CPI) in 2007 using 2006 as the base year.Show all your work.

(Essay)

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Question 126

The percentage change in any economic variable,including the consumer price index (CPI),is measured by which equation?

(Multiple Choice)

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Question 127

You know that the consumer price index (CPI) at the beginning of this year was 250 and the rate of inflation was 14%; this would mean:

(Multiple Choice)

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Question 128

Deflation:

(Multiple Choice)

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Question 129

The textbook shows that the inflation-adjusted movie receipts for Star Wars (released 1977) were $1,410,707,000 and the original receipts were $460,998,000.The implication is that:

(Multiple Choice)

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Question 130

If your real wage rose but your nominal wage fell,this would imply that:

(Multiple Choice)

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Question 131

Inflation is not a problem:

(Multiple Choice)

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Question 132

Refer to the following table to answer the next four questions: -As presented in the table,the rate of inflation from 1999-2000 (i.e.,during the year 2000) was (rounded to two decimal places):

(Multiple Choice)

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Question 133

Refer to the following figure when answering the next five questions: -Based on the figure,which of the following statements best applies?

(Multiple Choice)

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Question 134

Usually in the United States and other advanced economies:

(Multiple Choice)

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Question 135

According to the textbook,the top-grossing movie of all time (adjusted for inflation) is:

(Multiple Choice)

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Question 136

What is the underlying concept behind future price level uncertainty?

(Essay)

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Question 137

In some nations the only currency is gold.Someone proposes the argument that if gold were the only currency,there could not be inflation.Would you agree or disagree with this statement? Explain

(Essay)

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Question 138

In Country Z,the prices of goods are measured on an annual basis on the last day of the year.In Country Y,the prices of goods are measured on a weekly basis every Wednesday.Comparing the two countries based on this information:

(Multiple Choice)

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Question 139

The chained consumer price index (CPI) tends to more accurately reflect prices by updating the consumer basket of goods:

(Multiple Choice)

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Question 140

Showing 121 - 140 of 141

Donna Newton made $0.30 per hour in 1946 at a small restaurant in Clearfield,Pennsylvania.If the consumer price index (CPI) was 18.3 in 1946 and 202.4 in 2011 and the legal minimum wage in 2011 was $7.25,then:

What is the consumer price index (CPI)?

Typically the largest percentage category in the consumer price index (CPI) is:

The signing of long-term wage and price agreements and the relationship to inflation most likely raises the issue of:

You have to pay costs for your business now but you also have to enter into long-term contracts to repay loans in the future.If inflation occurs,the best term for the problem that occurs in this case is:

Using the table below,compute the consumer price index (CPI) in 2007 using 2006 as the base year.Show all your work.

The percentage change in any economic variable,including the consumer price index (CPI),is measured by which equation?

You know that the consumer price index (CPI) at the beginning of this year was 250 and the rate of inflation was 14%; this would mean:

Deflation:

The textbook shows that the inflation-adjusted movie receipts for Star Wars (released 1977) were $1,410,707,000 and the original receipts were $460,998,000.The implication is that:

If your real wage rose but your nominal wage fell,this would imply that:

Inflation is not a problem:

Refer to the following table to answer the next four questions: -As presented in the table,the rate of inflation from 1999-2000 (i.e.,during the year 2000) was (rounded to two decimal places):

Refer to the following figure when answering the next five questions: -Based on the figure,which of the following statements best applies?

Usually in the United States and other advanced economies:

According to the textbook,the top-grossing movie of all time (adjusted for inflation) is:

What is the underlying concept behind future price level uncertainty?

In some nations the only currency is gold.Someone proposes the argument that if gold were the only currency,there could not be inflation.Would you agree or disagree with this statement? Explain

In Country Z,the prices of goods are measured on an annual basis on the last day of the year.In Country Y,the prices of goods are measured on a weekly basis every Wednesday.Comparing the two countries based on this information:

The chained consumer price index (CPI) tends to more accurately reflect prices by updating the consumer basket of goods:

The Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Price Controls

The Efficiency of Markets and the Costs of Taxation

Introduction to Macroeconomics and Gross Domestic Product

Unemployment

Savings, interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy

International Trade

International Finance

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