An overall decline in communication and transportation costs have facilitated global interactions in the twentieth and the twenty first century

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $51; and in 2016, the basket's cost was $52 . The value of the CPI in 2014 was

a. 98.0. b. 102.0. c. 104.0. d. 151.0.

If the government wishes to increase GDP by $1,200b, and the MPC is 0.75, it should:

A. increase its spending by $300b. B. decrease its spending by $900b. C. increase its spending by $900b. D. decrease its spending by $300b.