In the 1970s, a period of a high rate of inflation, a news magazine article listed people who were losing from inflation because their real purchasing power was falling. Those who lost the most were university professors
Which of the following explains this?
A) Their wage rates did not increase as much as the CPI.
B) The marginal benefit of their work was falling.
C) The professors' market basket was different than the market basket used to calculate the CPI.
D) Their wage rates increased more rapidly than the CPI.
E) The professors suffered from the CPI bias.
A
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A decrease in the price level will
a. increase the quantity of aggregate demand, shown as a downward movement along the existing aggregate demand curve b. decrease the quantity of aggregate demand, shown as an upward movement along the existing aggregate demand curve c. cause a rightward shift in the aggregate demand curve d. cause a leftward shift in the aggregate demand curve e. have no effect on the aggregate demand curve
Why can't two Governors of the Fed come from the same district and does this limitation make sense today?
What will be an ideal response?