If the nominal interest rate is 8 percent and the real interest rate is 3 percent, then the inflation rate equals:
A. 5 percent.
B. 8 percent.
C. 11 percent.
D. 3 percent.
Answer: A
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In response to an increase in total factor productivity
A) both the substitution effect and the income effect suggest that hours worked should increase. B) the substitution effect suggests that hours worked should increase, while the income effect suggests that hours worked should decrease. C) the substitution effect suggests that hours worked should decrease, while the income effect suggests that hours worked should increase. D) both the substitution effect and the income effect suggest that hours worked should decrease.
Explain why the supply-and-demand model should not be used to analyze the market for jeans
What will be an ideal response?
Firms in a high-wage nation such as the U.S. can compete effectively with imports from low-wage nations if
a. skill levels are identical in the nations b. the U.S. reduces tariffs on imports c. low-wage nations impose tariffs on U.S. made goods d. labor productivity is higher in the low-wage nation e. labor productivity is higher in the U.S.
When consumer spending is broken down into the major categories of goods and services, the largest single category is spending on transportation
a. True b. False Indicate whether the statement is true or false