Consumers in a country buy only two goods, pens and CDs. The prices and quantities purchased by urban households are in the table above. If 2011 is the reference base year, the cost of the CPI market basket in the base year is

The ________ curve is vertical

A) short-run aggregate supply B) short-run aggregate demand C) long-run aggregate supply D) long-run aggregate demand

Which of the following labor market trends have occurred in both the U.S. and in most Western European countries?

A. a substantial growth in real wages over the twentieth centaury B. a substantial growth in real wages and double digit rates of unemployment in the 1990s C. continuous and substantial growth in real wages and substantial job growth D. a pronounced decrease in wage inequality and double digit rates of unemployment in the 1990s