A local store noticed that when it increased the price of milk from $2.50 to $3.50 per gallon, it sold 33% less milk. Since everything else remained the same, we would say the

A change in the money supply creates demand and cost pressures that lead to future increases in the price level from which main sources? I. Excess demand for output and labor II. Inflationary expectations III. Raw materials prices

A) I B) II C) II and III D) I and II E) I, II, and III

Suppose that the following occurred in two countries during the past decade. Country X, real Gross Domestic Product (GDP) rose 40 percent and population rose 50 percent; Country Y, real Gross Domestic Product (GDP) increased 80 percent and population increased 70 percent. Based on this information, which is TRUE?

A. Both countries have experienced growth in per capita real Gross Domestic Product (GDP). B. Chances for an improved standard of living are greater in Country X. C. Only Country Y has experienced growth in its per capita real Gross Domestic Product (GDP). D. Neither country has experienced growth in per capita real Gross Domestic Product (GDP).