At the time of his retirement, an individual was able of purchase a basket of goods for $100 . If the price index rises by 3 percent every year, he would require _____ to purchase the same basket of goods 5 years later
a. $103.5
b. $120
c. $150
d. $115.9
d
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A union can achieve higher wages without accepting lower levels of employment of members by
A) striking. B) increasing the productivity of its members. C) increasing the amounts of imports. D) increasing the difficulty of its apprenticeship program.
Which of the following is an example of market failure?
a. Public goods. b. Externalities. c. Lack of competition. d. all of these.
If you were a supply-side economist, you would argue that high levels of government spending
a. stimulate aggregate demand that in turn creates the incentive for increased aggregate supply b. add to aggregate supply because they bring more resources into being c. is limited by the taxes supplied to it by those paying the tax d. crowd out private sector investment which negatively affects GDP growth e. cause private sector investment to decrease because corporate taxes must be raised to finance the government spending
Assume that consumption in the United States is $9,000 billion in 2009 . If the MPC is 0.8 and disposable income increases by $1,000 billion in 2010, then the level of consumption in 2010 will be
a. $10,000 billion. b. $9,800 billion. c. $9,000 billion. d. $7,200 billion.