Suppose That in 2010,the Producer Price Index Increases by 2

question 86

Multiple Choice

Suppose that in 2010,the producer price index increases by 2 percent.As a result,economists most likely will predict that

• A) GDP will increase in 2011.
• B) the producer price index will increase by more than 2 percent in 2011.
• C) interest rates will decrease in the future.
• D) the consumer price index will increase in the future.

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Definitions:

Note Payable

A written promise to pay a specific amount of money, usually with interest, by a certain date.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within a business’s normal operating cycle if longer than a year.

Supplies

Items used in the operation of a business that are consumed or not resalable, such as office supplies or manufacturing inputs.