GNI per capita can be adjusted by purchasing power to account for differences in the cost of living.

Shirley has to choose between a two-day trip and a three-day trip to Hollywood. The table below shows the expected benefit and cost for the different days

Using optimization in levels and optimization in differences, determine what Shirley's optimum decision should be. Does the decision differ with the techniques used? Which technique is faster to implement? Day Cost Benefit 1 $750 $800 2 $900 $1,000 3 $600 $800

When inflation occurs,

A) everyone (or almost everyone) is made worse off. B) only wealthy people can maintain their previous consumption levels. C) the cost of living rises. D) the prices of all goods rise in equal proportions. E) the purchasing power of money declines.