Do show your work. Using the price index given, calculate the value of GDP in real dollars for both 1995 and 1996. Calculate the inflation rate between 1995 and 1996 using the price index given. Quiz 7 Answers 1. The embargo raised oil prices significantly.
Oil is used to produce or transport most goods and so made almost all production more expensive.
On figure 2, show how AS and AD may have been shifting over the last few years. Fill in the missing values in the table. Based on the information in the table, provide an estimate of the marginal propensity to consume out of total income. 10 Answers Suppose that the Federal Reserve Board of Governors has decided to increase the rate of growth of the money supply. At the same time, substantial technological advances greatly increase labor productivity.