Based on the answer above, the price for bus rides _____________ and the quantity demanded for bus rides ____________

As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative to other consumer goods. This situation contributed to which bias in the consumer price index?

a. Substitution bias. b. Transportation bias. c. Quality bias. d. Indexing bias.

The quantity theory of money implies that the price level will be stable (no inflation or deflation) when the growth rate of the money supply equals

A) 0. B) the growth rate of the price level. C) the growth rate of the velocity of money. D) the growth rate of real GDP.