Suppose that the Consumer Price Index for a particular economy rose from 110 to 120 in year 1, 120 to 130 in year 2, and 130 to 140 in year 3. We could conclude that this economy is experiencing:

The elasticity of demand along the demand curve shown in the above figure is constant and equal to 1. Thus

A) area 0BCF equals area 0AGF. B) area 0BCF equals area FGDE. C) area 0BCF equals area 0ADE. D) area ABCG equals area 0AGF.

Suppose the consumption equation is represented by the following: C = 250 + .8YD. The multiplier for the above economy equals

A) 2. B) 3. C) 4. D) 5. E) none of the above