The price index was 150 in the first year, 142.5 in the second year, and 138.2 in the third year. The economy experienced
a. 5.0 percent deflation between the first and second years, and 3.0 percent deflation between the second and third years.
b. 7.5 percent deflation between the first and second years, and 4.3 percent deflation between the second and third years.
c. 5.3 percent inflation between the first and second years, and 4.1 percent inflation between the second and third years.
d. 7.5 percent inflation between the first and second years, and 4.3 percent inflation between the second and third years.
a
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In the above figure, the movement from point a to point b reflects
A) a decrease in the price of pizza. B) an increase in the demand for pizza. C) an increase in the number of people who eat pizza. D) an increase in the price of the tomato sauce used to produce pizza. E) a decrease in the number of firms producing pizza.
The data in the table above shows the relationship between the Joneses' total consumption and total household income. Based on these data, total consumption varies
A) directly with their total household income. B) independently of their total household income. C) inversely with their total household income. D) negatively with their income.