Suppose This Is the Base Year and There Are Only

question 39

Multiple Choice

Suppose this is the base year and there are only two goods (Good A and Good B) and the average person buys 4 of Good A in a year and 3 of Good B. If the Price of Good A is $5 and the Price of Good B is $10, the price index

• A)is 100.
• B)is 20.
• C)is 30.
• D)is 50.

Analyze the effects of tax rate changes on private savings and national savings.

Recognize the implications of different tax law changes on savings.

Comprehend the relationship between government deficits, interest rates, and investment.

Understand the relationship between inflation and unemployment in the short and long run.