Given the following figures, by approximately what percentage did Michael's real income increase between 2008 and 2009? Michael's 2008 money income = $60,000 Michael's 2009 money income = $72,000 2008 CPI = 120.0 2009 CPI = 128.0
a. zero
b. 6.7 percent
c. 12.5 percent
d. 20 percent
C
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You have noticed that your next-door neighbor, Mary, always works in the garden, and her husband, Joe, always walks the dog. You conclude that if Joe and Mary are efficient, then it must be the case that:
A. Joe has a comparative advantage in walking the dog. B. Joe experiences increasing opportunity costs when he gardens, but not when he walks the dog. C. Mary's opportunity cost of walking the dog is lower than Joe's. D. Mary has an absolute advantage in gardening.
Refer to Table 8-14. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2016 equals
A) 92.2. B) 102.6. C) 108.5. D) 109.1.
The government can continuously issue new bonds to pay the interest on its outstanding bonds so long as
A) the real GDP growth rate exceeds the real interest rate. B) the real interest rate exceeds the real GDP growth rate. C) the real interest rate exceeds the nominal interest rate. D) the nominal interest rate exceeds the cost of borrowing.
Factors affecting the price elasticity of demand include all of these EXCEPT:
a. percentage of the consumer's budget b. the availability and closeness of substitutes c. positioning as income inferior d. time period of adjustment e. all of the above affect the price elasticity of demand