The Keynesian-cross model is based on the idea that the ____ must equal total output

In the 1970s, a period of a high rate of inflation, a news magazine article listed people who were losing from inflation because their real purchasing power was falling. Those who lost the most were university professors

Which of the following explains this? A) Their wage rates did not increase as much as the CPI. B) The marginal benefit of their work was falling. C) The professors' market basket was different than the market basket used to calculate the CPI. D) Their wage rates increased more rapidly than the CPI. E) The professors suffered from the CPI bias.

Refer to Figure 1A.1. Assume that the graph in this figure represents the demand and supply curves for used cars, which are inferior goods. An increase in income would be represented by a shift from

A) Demand 1 to Demand 2. B) Demand 2 to Demand 1. C) Supply 1 to Supply 2. D) Supply 2 to Supply 1.