In April 2014, the money price of a carton of milk was 2.01 and ...

[joblessjake]

In April 2014, the money price of a carton of milk was 2.01 and the money price of gallon of gasoline was 3.63 . Calculate the relative price of a gallon of gasoline in terms of milk.
 
  What will be an ideal response?

Question 2

Refer to Figure 17-9. Fed Chairman Paul Volcker's response to the ________ of the late 1970s is depicted in the figure above as a movement from C to D to A.
 
  A) appreciation of the dollar B) deflation
  C) high inflation D) high unemployment

[macmac]

Answer to Question 1

The relative price of a gallon of gasoline in terms of milk equals (3.63 per gallon of gasoline)/(2.01 per carton of milk) = 1.81 cartons of milk per gallon of gasoline.

Answer to Question 2

C