If you get an 8 percent increase in your nominal income, your real income
A) definitely increases.
B) increases only if the inflation rate is more than 8 percent.
C) increases only if the inflation rate is equal to 8 percent.
D) increases only if the inflation rate is less than 8 percent.
E) increases if the inflation rate is more than or equal to 8 percent.
D
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A country will roughly double its GDP in five years if its annual growth rate is: a. 5 percent
b. 7 percent. c. 12 percent. d. 14 percent.
The infant industry argument is that:
a. those industries that produce products for infants should be protected. b. protectionism will provide consumers with lower prices. c. protectionism should be used to create a level playing field for the domestic firms to compete with foreign firms. d. protectionism promotes complete specialization in the country on the basis of comparative advantage. e. new industries should be protected from foreign competition until they have had adequate time to develop.
John Maynard Keynes believed the ideas of economists to be
a. generally incorrect. b. powerful. c. academic and without practical application. d. rantings of madmen.
Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?
A) D increases, S no change, P and Q increase. B) S increases, D no change, P decreases, Q increases. C) D and S increase, P and Q decrease. D) D no change, S increases, P decreases, Q decreases.