Which of the following is the largest single component of the market basket used to compute the consumer price index (CPI)?
a. Food and beverages.
b. Housing

____ is a new product pricing strategy which results in a high initial product price. This price is reduced over time as demand at the higher price is satisfied

a. Prestige pricing b. Price lining c. Skimming d. Incremental pricing e. None of the above

When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:

A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.