If the income effect outweighs the price effect of a wage increase, the quantity of labor supplied will:
A. increase.
B. decrease.
C. remain constant.
D. drop to zero.
B. decrease.
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The CPI was 225 in 2008 and 232.2 in 2009. The nominal interest rate during this period was 1.4 percent. What was the real interest rate during this period?
A) 3.2 percent B) 1.8 percent C) 4.6 percent D) -3.2 percent E) -1.8 percent
When the goods of competing companies are identical, consumers have no reason to prefer one product over the other, so the demand curve for each manufacturer will be perfectly elastic.
Answer the following statement true (T) or false (F)
At the end of 2009, the national debt stood at 60 percent of GDP, substantially higher than its World War II level
a. True b. False
Most statistical studies on the relationship between real interest rates and saving conclude that higher real interest rates
A. increase saving. B. tend to decrease saving. C. tend to decrease both consumption and saving. D. have no effect on saving.