If prices (as measured by the CPI) tripled and nominal wages tripled, what would happen to real wages?
a. They would triple.
b. They would remain unchanged.
c. They would increase by one-third.
d. They would decrease by one-third.
e. They would increase by a factor of nine.
B
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Xanadu Corp has issued 90 million shares of stock, and it has no plans to issue any more in the near future. If the demand for Xanadu stock increases,
a. the price and quantity of Xanadu stock will both increase b. the price and quantity of Xanadu stock will both decrease c. the price will remain constant, and the quantity of Xanadu stock will increase d. the quantity of Xanadu stock will remain constant, and the price will increase e. the price will increase, and the quantity of Xanadu stock will decrease
If a transaction in the balance of payments of Country A enters the foreign exchange market, then it is fair to say that:
a. Actually by definition, transactions in a nation's balance of payments cannot enter into the foreign exchange market. b. Uses of funds in Country A's balance of payments are supplies of Country A's currency in the foreign exchange market. c. Uses of funds in Country A's balance of payments are demands for Country A's currency in the foreign exchange market. d. Sources of funds in Country A's balance of payments are demands for foreign currencies in the foreign exchange market.
Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?
a. Why do prices in general rise by more in some countries than in others? b. Why do wages differ across industries? c. Why do national production and income increase in some periods and not in others? d. How rapidly is GDP currently increasing?
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower