A physical examination is NOT a good screening device for life insurance companies if
A) life-threatening diseases are usually undetected.
B) doctors cannot be easily bribed to write a good report.
C) medical history is a good predictor of life expectancy.
D) one's current state of health is a good predictor of life expectancy.
A
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An economy in long-run equilibrium experiences an increase in aggregate demand. According to the classical model,
A) the price level will increase, but real GDP will not change. B) the price level and real GDP will increase at the same time. C) the price level will increase, but real GDP will decrease. D) the price level will rise first, then real GDP will increase.
In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the inflation rate in 2013?
A) 69 percent B) zero C) 31 percent D) 2 percent