In the above figure, the curve labeled A shifts rightward if
A) expected future profits decrease.
B) the quantity of money decreases.
C) the substitution effect occurs.
D) taxes decrease.
Question 2
As of July 2012, the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates
A) prices for food and fuel grew less rapidly than prices for other goods.
B) prices for food and fuel grew more rapidly than prices for other goods.
C) the underlying inflation rate was lower than the overall inflation rate.
D) hyperinflation.
Past and Future Use of Aggregate
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