D) the natural rate of unemployment will decrease. Table 9-2 Base Year (2013) 2018 Product Quantity Price . Price Milk 50 $1.20 $1.50 Bread 100 1.00 1.10 40) Refer to Table 9-2. Assume the market basket for the consumer price index has two products 40) -bread and milk-with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals A) 118. B) 116. C) 86. D) 85.32) Assume that in 2016, prices increased by 2% over the previous year and the nominal rate 32) of interest was 8%. In 2017, prices increased by 5%. If the real rate of interest is to remain at the same level in 2017 as it was in 2016, then what should the nominal interest rate in 2017 be? A) 0% B) 20% C) 14% D) 11% E) 13%19) Which of the following events shifts the aggregate expenditure curve and also shifts the aggregate 19) demand curve? F a decrease in investment Il. a change in the price level Ill. an increase in exports A) I and II B) I and Ill C) II and Ill D) I, II, and Ill E) none of the above 20) Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have 20) eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP? A) GDP will not change. B) GDP will increase. C) GDP will decrease. D) GDP may increase or may decrease depending on inflation