Suppose the nominal price of gasoline was $0.90 per gallon in 1987. To convert this value to the real price of 1987 gasoline in 2012 dollars, we should:
A) multiply by the 1987 CPI and divide by the 2012 CPI.
B) multiply by the 2012 CPI and divide by the 1987 CPI.
C) not do anything because this is the real price in 2012 dollars.
D) none of the above
B
Economics
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In a persisting demand-pull inflation
A) aggregate demand increases and potential GDP decreases. B) aggregate demand decreases and aggregate supply decreases. C) aggregate supply decreases and aggregate demand increases. D) aggregate supply increases and aggregate demand increases. E) None of the above answers is correct.
Economics
In the above figure, which of the figures shows a relationship between x and y with a negative slope?
A) Figure A B) Figure B C) Figure C D) Figure D E) Both Figure A and Figure B
Economics