\f(Consider This) Fill in the blanks: Wages are _ upward but_downward. 24 Multiple Choice 01:40:13 O sticky, elastic O flexible, sticky O static, flexible O sticky, flexible28 The consumer price index (CPI): Multiple Choice 8 01:34:20 O is also known as the GDP price index. is an average of the prices of all consumer goods purchased each year. O measures prices of goods, but not services since services don't fit into a market basket. O measures changes in the prices of a market basket of some 600 goods and services purchased by urban consumers.Cost-push inflation: 31 Multiple Choice 8 01:33:53 O Is a mixed blessing because it has positive effects on real output and employment. O shifts the nation's production possibilities curve leftward. O moves the economy inward from its production possibilities curve. O is caused by excessive total spending.36 Level of business activity 01:30:36 Time Refer to the above diagram. The phases of the business cycle from points A to D are, respectively: Multiple Choice O peak, recession, trough, expansion. O peak, recession, expansion, trough. O trough, expansion, expansion, peak. O expansion, recession, trough, peak.\f48 or Consumer goods 01:23:39 (b) Capital goods Refer to the above diagram. Curve (a) is the current production possibilities frontier for the economy. Other things being equal, society's current choice of point P on curve (a) means: Multiple Choice O a slower rate of economic growth compared to choosing point N. O It is unachievable because it exceeds the productive capacity of the economy. O more rapid economic growth compared to choosing point N. O the same rate of growth as would occur if point N were chosen