Author Question: Suppose that the consumer price index (CPI) was 160 in Year X and 166 in Year Y, inflation during ... (Read 41 times)

strangeaffliction · **on:** Jun 30, 2018

Suppose that the consumer price index (CPI) was 160 in Year X and 166 in Year Y, inflation during Year Y was approximately:
a. zero; prices were stable.
b. 3.8 percent.
c. 6 percent.
d. 66 percent.

Question 2

The school of economic thought which argues that through tax reductions, and deregulation, government creates the proper incentives for the private sector to increase aggregate supply is known as the:
a. rational expectations school.
b. neo-Keynesian school.
c. supply-side school.
d. new classical school.
e. classical school.