Many economists argue that, in the long run, the economy ...

[Awilson837]

Many economists argue that, in the long run, the economy self-corrects and achieves full employment. This argument is known as the:
 a. natural rate hypothesis.
  b. incomes policy approach.
  c. political business cycle theory.
  d. Keynesian cross model.

Question 2

Consider an economy with only two goods: bread and wine. In 1982, the typical family bought 4 loaves of bread at 50 per loaf and 2 bottles of wine for 9 per bottle. In Year X, bread cost 75 per loaf and wine cost 10 per bottle. The CPI for Year X (using a 1982 base year) is:
 a. 100.
  b. 115.
  c. 126.
  d. 130.

[Jayson]

Answer to Question 1

a

Answer to Question 2

b

[Awilson837]

TYSM

[JaynaD87]

Excellent