Suppose the value of the CPI is 1.100 in year 1, 1.122 in year 2, and 1.133 in year 3. Assume also that the price of computers increases by 3 percent between year 1 and year 2, and by another 3 percent between year 2 and year 3. The price level is increasing, the inflation rate is , and the relative price of computers is .

)murphy was consuming 100 units of x and 50 units of y . the price of x rose from 2 to 3. the price of y remained at 4. (a) how much would murphy’s income have to rise so that he can still exactly afford 100 units of x and 50 units of y ? g

Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock

In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. what is another way to state this fact? (a) market supply is much more elastic in the long run than the short run. (b) in the long run, average total cost is minimized. (c) in the long run, price equals marginal cost. (d) market supply is much less elastic in the long run than the short run.