1 If ten years ago the prices of the items bought last month by the average consumer would have been much higher, then one can likely conclude that
A) the aggregate price level has declined during this ten year period.
B) the average inflation rate for this ten year period has been positive.
C) the average rate of money growth for this ten year period has been positive.
D) the aggregate price level has risen during this ten year period.
2 From 1950 2008 the price level in the United States increased more than ________.
A) twofold
B) threefold
C) sixfold
D) ninefold
3 Complete Milton Friedman”s famous statement, “Inflation is always and everywhere a ________
phenomenon.”
A) recessionary
B) discretionary
C) repressionary
D) monetary