If the price index in period 2 is 109 and the price index in period 3 is 125, the rate of inflation between period 2 and period 3 is

In order for an economy to increase its production possibilities, the economy must

A) be very efficient. B) increase inputs. C) increase its wants. D) reduce output.

The immediate effect of a purchase of a government bond on the gross domestic product (GDP) is_____

a. a decrease in consumption b. an increase in government spending c. an increase in investment d. a decrease in investment e. nonexistent, since no real goods and services have been produced