We are investigating the relationship among three variables. We have graphed two of them. Suppose that the variable that is not measured on the x-axis or the y-axis changes. Then, there is
A) no impact on the plotted curve because the variable is not measured on either of the axes.
B) a violation of the absence of trend assumption.
C) a shift in the plotted curve.
D) a movement along the plotted curve.
E) an omitted variable.
Question 2
If your nominal income is 75,000 and your real income in base year prices is 60,000, what is the CPI?
A) 250 B) 125 C) 80 D) 200 E) 100
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