If the GDP per capita is $2,000, and the population is 150,000 people, then the GDP must be:

Suppose that Angelo and Sonia each win $500 in a charity raffle. Angelo spends his winnings on a new ipad. Sonia saves her winnings. Which of the following is correct?

a. Both Angelo's and Sonia's behavior suggest that they base their purchasing decisions on transitory income. b. Angelo's behavior suggests that he bases his purchasing decisions on transitory income rather than permanent income. Sonia's behavior suggest that she bases her purchasing decisions on permanent income rather than transitory income. c. Angelo's behavior suggests that he bases his purchasing decisions on permanent income rather than transitory income. Sonia's behavior suggests that she bases her purchasing decisions on transitory income rather than permanent income. d. Both Angelo's and Sonia's behavior suggest that they base their purchasing decisions on permanent income.

If the price index last year was 100 and today it is 104, what is the inflation rate over this period?

(a) -4%; (b) 1.4%; (c) 4%; (d) 40%.