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In which of the following cases was the inflation rate 10 percent over the last year?a)One year ago the price index had a value of 145 and now it has a value of 163.b)One year ago the price index had a value of 110 and now it has a value of 120.c)One year ago the price index had a value of 126 and now it has a value of 140.d)One year ago the price index had a value of 120 and now it has a value of 132.

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Before the Industrial Revolution, living standards in the worldA) were relatively stagnant for long periods of time.B) were already rising significantly for many decades.C) are not known, for lack of reliable records from that period.D) were declining because of rapid increases in population.
Answer the next question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.Year - Units of Output - Price per Unit1 8 $2 2 10 3 3 15 4 4 18 5 5 20 6If year 2 is the base year, then real GDP in year 5 is...A) $120B) $90C) $60D) $30
Consider a farmer who grows wheat and sells it to a bakery. The bakery then uses this wheat to bake bread sold to consumers. Which of the following is true?A) Including wheat in the calculation of GDP would be double counting.B) Wheat is a final good.C) Wheat is included in the calculation of GDP.D) Including bread in the calculation of GDP would be double counting.

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