The formula for the CPI is

Investment includes

If the automobile workers’ union successfully negotiates a wage increase for its members, how does the wage hike affect the supply of automobiles?

Which of the following are policy instruments available to the Fed as it tries to achieve its macroeconomic goals?i.government expenditure on goods and services and taxesii.the government budget deficit or surplusiii.changes in the Money Supply

Price ceilings

Monetary policy goals include i.maximum employment.ii.stable prices.iii.moderate long-term interest rates.

If a private wage contract is agreed upon with a cost of living adjustment such that wage hikes are equal to increases in the CPI,

The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and B is

The economy is at the equilibrium shown as point a in the above figure. To restore the economy to potential GDP, the Fed should

During a recession, unemployment benefit payments increase without the need for any government action. This increase is an example of