When we are calculating the consumer price index and the inflation rate for a certain year,
a. the value of the consumer price index may depend on the choice of a base year, but the inflation rate does not depend on the choice of a base year.
b. the inflation rate may depend on the choice of a base year, but the value of the consumer price index does not depend on the choice of a base year.
c. both the value of the consumer price index and the inflation rate may depend on the choice of a base year.
d. neither the value of the consumer price index nor the inflation rate depends on the choice of a base year.
a
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Refer to Figure 4-6. What is the value of consumer surplus after the imposition of the price floor?
A) $1,500 B) $2,700 C) $4,500 D) $5,700
Suppose the current level of output is 5000 and the elasticity of output with respect to labor is 0.7. A 10% increase in labor would increase the current level of output to
A) 5035. B) 5070. C) 5350. D) 5700.