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Author Question: In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and ... (Read 129 times)

pane00

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on: Jun 29, 2018
In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the inflation rate in 2013?
 
  A) 69 percent
  B) zero
  C) 31 percent
  D) 2 percent

Question 2

Explain how gross investment, depreciation, net investment, and the capital stock are related.
 
  What will be an ideal response?


jasonq

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

The change in the capital stock equals net investment and net investment equals gross investment minus depreciation.


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