Unformatted text preview: 3. If the prices of Canadian-made snowmobiles imported into the United States increase, a. both the GDP deflator and the consumer price index will increase. b. neither the GDP deflator nor the consumer price index will increase. c. the GDP deflator will increase but the consumer price index will not increase. d. the consumer price index will increase, but the GDP deflator will not increase. 4 & 5. In 1964, Lyndon Johnson made $100,000 as President of the United States. President Bush currently makes $400,000 as President. What is Johnson salary in 2007 dollars? What is Bush’s salary in 1964 dollars? Show your work. CPI 1964 20 1990 100 2007 120 Johnson: (120/20)*100,000 = $600,000 Bush: (20/120)*400,000 = $66,667...
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- Spring '08
- Macroeconomics, President of the United States, Consumer price index, GDP deflator