Last year the price level increased from 118 to 122. The increase in the price level leads to a decrease in
A) potential GDP.
B) the money wage rate.
C) the buying power of money.
D) the real interest rate.
E) the price of domestic goods and services relative to foreign goods and services.
C
You might also like to view...
For decreases in wage taxes, substitution effects put negative pressure on tax revenues while wealth effects put positive pressure on tax revenues.
Answer the following statement true (T) or false (F)
Why does each of these gas stations have so little control over the price of the gasoline they sell?
What will be an ideal response?
The African agrarian system is characterized by
(a) absentee landlords. (b) a dual agrarian system known as latifundio-minifundio. (c) land fragmentation. (d) shifting cultivation.
Refer to the information provided in Table 14.5 below to answer the question that follows. Table 14.5B's Strategy ?AdvertiseDon't Advertise??A's profit $200 millionA's profit $400 million?AdvertiseB's profit $200 millionB's profit $100 millionA's Strategy????Don'tA's profit $100 millionA's profit $150 million?AdvertiseB's profit $400 millionB's profit $150 millionRefer to Table 14.5. Firm A's dominant strategy is to not advertise.
Answer the following statement true (T) or false (F)