Exhibit 19-3

question 25

Multiple Choice

Exhibit 19-3.Consider the following information about the price and the price index of a popular book over three years. Refer to Exhibit 19-3.If the price index in 2011 was 95,calculate the percent change in the price of the book between 2010 and 2011.

• A)-12.04%
• B)-5%
• C)-2.53%
• D)-13%

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Definitions:

Empty Nest Syndrome

A feeling of loneliness or sadness that occurs among parents after their children have grown up and left home.

Workforce Participation

The proportion of working-age individuals who are employed or actively seeking employment.

Rational Expectationist

An economist who believes that individuals make predictions about the future based on all available information, adjusting their behavior accordingly.

Supply-side

An economic theory that emphasizes the role of supply in fostering economic growth by reducing taxes and decreasing regulation, with the intent of increasing production.