1. The Consumer Price Index is:
a. The sum of the incomes in the base year divided by the sum of the tax.
b. The sum of the incomes in the base year divided by the sum of the incomes in the current year.
c. The sum of the prices in the base year divided by the sum of the incomes in the current year.
d. The sum of the prices in the current year divided by the sum of the prices in the base year times 100.
e. None of the above
2. To fight inflation you would:
a. Raise taxes, lower the money supply, increase interest rates, and reduce government spending.
b. Lower taxes, lower the money supply, increase interest rates, and reduce government spending.
c. Raise taxes, increase the money supply, increase interest rates, and reduce government spending.
d. Raise taxes, increase the money supply, increase interest rates, and increase government spending.
e. None of the above
3. How would you show unemployment graphically?
a. As a point outside the production possibilities curve.
b. The change in the tax divided by the change in the base.
c. As an increase in normal good income using supply and demand curves
d. As a point inside the production possibilities curve
e. None of the above