Questions from Macroeconomics

Q: Assume the market basket contains 10X, 20Y, and 45Z.

Assume the market basket contains 10X, 20Y, and 45Z. The current-year prices for goods X, Y, and Z are $1, $4, and $6, respectively. The base-year prices are $1, $3, and $5, respectively. What is the...

Q: Samantha is flying from San Diego, California, to Arlington,

Samantha is flying from San Diego, California, to Arlington, Texas, on a commercial airliner. She asks for an aisle seat but only middle-of-the-row seats are left. Why aren’t any aisle seats left?

Q: If the CPI is 150 and nominal income is $100,

If the CPI is 150 and nominal income is $100,000, what does real income equal?

Q: There is a decrease in wealth.

There is a decrease in wealth. The price level will _______________ and Real GDP will _______________.

Q: There is a decrease in wage rates.

There is a decrease in wage rates. The price level will _______________ and Real GDP will _______________.

Q: Consumers start to expect lower future incomes.

Consumers start to expect lower future incomes. The price level will _______________ and Real GDP will _______________.

Q: There is a decrease in productivity.

There is a decrease in productivity. The price level will _______________ and Real GDP will _______________.

Q: Consumers start to expect higher future prices.

Consumers start to expect higher future prices. The price level will _______________ and Real GDP will _______________.

Q: There is a decrease in personal income taxes.

There is a decrease in personal income taxes. The price level will _______________ and Real GDP will _______________.

Q: There is an adverse supply shock.

There is an adverse supply shock. The price level will _______________ and Real GDP will _______________.