As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative to other consumer goods. This situation contributed to which bias in the consumer price index?

Real income will rise from one year to the next if nominal income

A. rises and the price level rises faster. B. falls and the price level falls faster. C. falls faster than the price level. D. falls and the price level rises.

In the long run, firms in a monopolistically competitive market

A. usually earn positive economic profits. B. always earn monopoly profits. C. earn zero economic profits. D. usually earn economic losses.