To approximate the percentage change in real income over any period of time,
a. we need to subtract the percentage change in nominal income from the inflation rate
b. we need to subtract the rate of inflation from the percentage change in nominal income
c. we need to divide the percentage change in nominal income by the inflation rate
d. we need to multiply the change in income by the inflation rate
e. we need to multiply the nominal percentage change in income by the percentage change in inflation rate
B
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College students living off-campus frequently consume large amounts of ramen noodles and boxed macaroni and cheese. When they finish school and start careers, their consumption of both goods frequently declines. This suggests that ramen noodles and boxed
macaroni and cheese are: A. inferior goods. B. normal goods. C. complementary goods. D. substitute goods.
M2 includes M1 plus
A) currency in circulation, checking account deposits in banks, and holdings of traveler's checks. B) savings account balances, money market deposit accounts in banks, small-denomination time deposits, and noninstitutional money market fund shares. C) checking account deposits, large-denomination time deposits, and noninstitutional money market fund shares. D) currency in circulation, savings account balances, and small-denomination time deposits.
Monopolistically competitive firms do not achieve productive efficiency because
a. entry of firms raises production costs in the long run b. barriers to entry allow profit to be earned in the long run c. price is greater than marginal cost at the profit maximizing output level d. profit is maximized at a quantity where average total cost is not minimized e. there is no threat of entry in the long run
Programs to equalize household income would most help ______.
a. low-income single people b. low-income large families c. high-income married couples d. high-income large families