One fundamental idea in macroeconomics about inflation is:
A. when all prices rise, inflation occurs and everyone is worse off.
B. if all prices decline, the purchasing power of everyone declines.
C. if all wages rise, then inflation doesn't really affect anyone's purchasing power.
D. keeping prices constant is the only way to ensure increasing purchasing power over time.
Answer: C
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A surplus of labor is eliminated by ________ in the real wage rate and a shortage of labor is eliminated by ________ in the real wage rate
A) an increase; a decrease B) a decrease; an increase C) an increase; an increase D) a decrease; a decrease E) None of the above answers is correct because shortages and surpluses are eliminated by changes in the demand for labor and the supply of labor, not the wage rate.
Refer to Table 3-6. The table contains information about the sorghum market. Use the table to answer the following questions
a. What are the equilibrium price and quantity of sorghum? b. Suppose the prevailing price is $6 per bushel. Is there a shortage or a surplus in the market? c. What is the quantity of the shortage or surplus? d. How many bushels will be sold if the market price is $6 per bushel? e. If the market price is $6 per bushel, what must happen to restore equilibrium in the market? f. At what price will suppliers be able to sell 36,000 bushels of sorghum? g. Suppose the market price is $14 per bushel. Is there a shortage or a surplus in the market? h. What is the quantity of the shortage or surplus? i. How many bushels will be sold if the market price is $14 per bushel? j. If the market price is $14 per bushel, what must happen to restore equilibrium in the market?
According to data on GDP growth between 1980 and 2009, which of the following statements is true?
What will be an ideal response?
What effect have Medicare subsidies had on the consumption of medical services?
A. The consumption of medical services has increased because Medicare subsidies give people the incentive to seek more care than they would otherwise. B. The effect cannot be measured because it is difficult to quantify the amount of resources devoted to our health care system. C. The consumption of medical services has been unaffected, because people don't consider the financial cost when seeking services related to their health. D. The consumption of medical services has been unaffected, because government restrictions have prevented patients from seeking a level of care above and beyond what they would choose if they had to pay for medical treatment out of pocket.