A price index is:
A. a comparison of the current price of a market basket to a fixed point of reference.
B. a comparison of real GDP in one period relative to another.
C. the cost of a market basket of goods and services in a base period divided by the cost of
the same market basket in another period.
D. a ratio of real GDP to nominal GDP.
A. a comparison of the current price of a market basket to a fixed point of reference
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If, due to rising demand, the price of cotton rose 15 percent while the prices of other goods and services rose an average of 10 percent,
a. the relative price of cotton has risen and one would expect the output of cotton to rise as a result. b. the relative price of cotton has risen and one would expect the output of cotton to fall as a result. c. the relative price of cotton has fallen and one would expect the output of cotton to rise as a result. d. the relative price of cotton has fallen and one would expect the output of cotton to fall as a result.
The long-run Phillips curve would shift to the left if
a. the money supply growth rate increased or if effective job-training programs were implemented. b. the money supply growth rate increased, but not if effective job-training programs were implemented. c. effective job-training programs were implemented, but not if the money supply growth rate increased. d. None of the above is correct.