The price of a gallon of gasoline was $2.01 in May 2004 compared to 39 cents in 1973 . However, the Consumer Price Index was 44.4 in 1973 compared to 189.1 in May 2004 (1980 - 1984 = 100). In terms of the purchasing power of the dollar in 2004, the 1973 price of gasoline was

In the 1970s a typical college student's consumption might be represented by the following items: a small used car, black and white television set, macaroni and cheese and generic brand beer

As many of these students graduated from college what do you expect happened to the composition and quantity of the goods mentioned? Explain.

Explain the effects of expansionary monetary policy on a country's balance of payments and real product and income with floating exchange rates.

What will be an ideal response?