Measuring expenditures and income with the price level allowed to vary, so that changes in these values represent changes in either the actual amount of goods, services, and income or changes in the price level or a combination of both factors is

Refer to Figure 2-8. What is the opportunity cost of producing 1 ton of pineapples in Costa Rica?

A) 3/8 of a ton of coconuts B) 2/3 of a ton of coconuts C) 1 1/2 tons of coconuts D) 100 tons of coconuts

When the expected inflation rate increases, the real cost of borrowing ________ and bond supply ________, everything else held constant

A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases