The Price of a New Textbook Is $60 in One

question 145

Multiple Choice

The price of a new textbook is $60 in one year and $75 two years later, while the price of a used copy of the textbook increased from $25 to $37.50. The relative price of a new textbook

• A) increased by 25 percent.
• B) increased from 2.4 to 3.
• C) decreased from 2.4 to 2.0.
• D) decreased from 1.4 to 1.25.

Learn how changes in national and international price levels affect imports and exports.

Acknowledge the role of interest rates in consumption, investment, and macroeconomic equilibrium.

Grasp the implications of exceeding or underperforming aggregate production relative to aggregate purchases.

Understand the concept of the aggregate demand curve and its downward slope due to various effects.

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Definitions:

Aversive Conditioning

A behavioral training method that uses unpleasant stimuli to discourage undesirable behaviors.

Immunosuppression

A reduction in the efficiency of the immune system's ability to fight infections or diseases.

Law of Effect

A psychological principle suggesting that behaviors followed by satisfactory outcomes are more likely to be repeated, whereas those followed by unsatisfactory outcomes are less likely to be repeated.

Satisfying Outcomes

Outcomes that fulfill or exceed the expectations of an individual, leading to contentment or happiness.