Suppose your nominal income this year is 5 percent higher than last year. If the inflation rate for the period was 3 percent, then your real income was:
A. increased by 1.67 percent.
B. increased by 2 percent.
C. increased by 8 percent.
D. decreased by 0.6 percent.
Answer: B
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The key determinant of whether Social Security will be a good investment is _____
a. the number of hours worked by future employees b. internal migration c. real income growth in the United States d. the solvency of the system today
Which statement accurately compares government purchases and net exports in terms of their impacts on aggregate demand?
a. The impact of government purchases is much larger than the impact of net exports. b. The impact of government purchases is similar to the impact of net exports. c. Neither government purchases nor net exports have an impact. d. The impact of government purchases is much smaller than the impact of net exports.
A bilateral monopoly means
A. that a monopsonistic employer bargains with both an industrial and a craft union. B. that a monopsonistic employer bargains with a monopoly. C. that a monopsonistic employer bargains with two unions. D. that an industrial union bargains with a two-firm oligopoly.
Normative economics seeks to understand behavior, but not make judgments.
Answer the following statement true (T) or false (F)