If the price index is 100 this year, then: a. there has been no ...

[kshipps]

If the price index is 100 this year, then:
 a. there has been no inflation during the year.
 b. the price level is thrice as it was in the base year.
 c. the price level is one hundred times what it was in the base year.
  d. the price level is double what it was in the base year.
 e. the inflation rate has been 100 percent since the base year.

Question 2

Lags in the approval and implementation of fiscal policy:
 a. weaken fiscal policy as a tool of economic stabilization.
 b. increase the effectiveness of fiscal policy as a tool of economic stabilization.
 c. help legislators better assess what policies are most appropriate to adopt.
 d. make fiscal policy more responsive to the current economic environment.
 e. cause fiscal policy to be more effective at changing the level of real GDP than changing the price level only in the long run.

[hanadaa]

Answer to Question 1

a

Answer to Question 2

a

[kshipps]

Correct answers!

[hanadaa]

Great! Please up vote