answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: Which Is Likely To Have The Larger Effect On The CPI A 2 Percent Increase In The Price Of Food Or A 3 Percent Increase In The Price Of Diamond Rings?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

Few macroeconomics questions. What effect will an increase in the marginal propensity to save have on the ZZ line and output When the economy is in eqbm does G equal T?

the ZZ line will become steeper and a given change in autonomous consumption to have a larger effect on output


What is it called when it takes more money to buy the same goods?

A price increase caused by a larger currency supply is called inflation. If the supply of the goods remains the same, the result is a higher price, in effect devaluing the money.


Will an increase in inflation have a larger impact on the price of a bond or preferred stock?

The preferred stock


Why was surplus important?

because it made families get larger and because then if a family did not want to increase that family would have more food to survive


What will happen to the equilibrium price level and real GDP if aggregate demand and aggregate supply both decreases?

AD INCREASES AS DECREASES As the AD/AS model exhibits (exactly the same as Demand and Supply model except Price Level instead of Price and output or real GDP instead of quantity) an increase in AD leads to an inrease in both price level and output. Imagine if there is an increase in demand for tomatoes. According to demand and supply the price of tomatoes will increase. Expand this on a macro scale. When the Aggregate demand for goods and services increase, this pushes the price up. Also in response to this increase in demand, producers will produce more of the good to take advantage of the increased demand, leading to an increase in real GDP. If AS decreases, goods become more scarce and as long as demand is fixed, the price will increase. 'WE PAY MORE MONEY FOR RARE THINGS'. Furthermore, because there is less supply output will decrease. Putting these effects together, both will lead to an increase in price level. The effect on output depends on which force is larger.

Related questions

What percent of increase from 16 to 33?

33 is 106.25% larger than 16.


What is the ring setting called when a smaller diamond is set under a larger diamond to increase the sparkle?

There must be a ways to place a Smaller diamond under the larger diamond, may be they must be using same setting or 2 different settings, but there is no specific setting for placing smaller under larger diamond. If any one come across the name of such setting please let me know.


How do you produce a new confidence interval with a larger width?

Increase your percent confidence to provide an increased width.


What is the percent increase of 275 to 343.75?

Given any two distinct positive numbers, the percent increase of the larger l over the smaller s is 100[(l - s)/s. In this instance, the answer is 25 %.


How do you find the percent increase from one number to another?

-- divide the larger number by the smaller one-- subtract '1' from the answer-- multiply what's left by 100You now have the percentage increase from the smaller number to the larger one.


When do you spell the word percentage or use percent?

Example sentences would be: "There is a larger percentage of one material than another." "There is an eight percent increase in pies."


Which is larger 0.8 percent or 0.22 percent?

0.8 percent (= 0.80%) is larger.


Calculate percentage increase from 18 to 23 percent?

There is a 5% increase. (23 - 18)If you meant the percentage increase from 18 to 23. It is a 27.77% increase.percentage increase = ( a - b ) / aa = larger ending numberb = smaller starting number


Is 0.5 percent larger than 0.30 percent?

0.5 percent is larger than 0.30 percent.


Is 0.10 percent larger than 0.5 percent?

No. 0.5 percent is larger than 0.10 percent.


What is larger 100 percent of a yard or 10 percent of a mile?

10 percent of a mile is larger.


What is ten percent larger than 220?

what is ten percent larger 220