Under a constant growth rate of money rule of 4 percent in an economy in which Real GDP grows at an average rate of 3 percent and velocity is constant, the inflation rate is
A) 7 percent.
B) -7 percent.
C) 1 percent.
D) -1 percent.
E) constant at zero.
C
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A normal good is a good for which the demanded decreases as income decreases, holding everything else constant
Indicate whether the statement is true or false
Real wages have fallen since 1973 for all the following reasons except
A. millions of high paying manufacturing jobs have migrated to low wage countries. B. the slowing down of productivity growth. C. the switch from high paying manufacturing jobs to lower paying service sector jobs. D. All of these choices are reasons.
At which point is society employing some of its available technology but not all of it? (See Figure 1.1.)
A. A. B. B. C. C. D. D.
When nations attempt to move quickly from central planning to a market system, they face the obstacle of high transaction costs in large part because
A) market systems are unnatural and require careful design. B) people who have lived under socialism lack the basic skills a market system requires. C) people who have long lived under socialism are not sufficiently individualistic. D) the experience of socialism makes people distrustful of one another. E) they lack many of the institutions that develop over time in a market system.