If a the price index was 60 in 2000 and the price index was 90 in 2009, the best estimate of the annual inflation rate between 1998 and 1999 is:

If you negotiated a salary based on an anticipated inflation rate of 4 percent, and the actual inflation rate turned out to be 6 percent:

A. the purchasing power of your real wages would be more than you anticipated. B. your employer would have gained at your expense. C. your real wage will increase, but your nominal wage will decrease. D. the purchasing power of your wages will not change, since purchasing power is based on your nominal wage.

A consumer's budget set includes all affordable combinations of two goods.

Answer the following statement true (T) or false (F)