Jimmer's nominal income will go up by 10 percent next year. Inflation is expected to be - 2 percent next year. By approximately how much will Jimmer's real income change next year?
What will be an ideal response?
12%
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What are the pros and cons of using cold turkey disinflation compared to a policy of gradualism?
What will be an ideal response?
For a perfectly competitive firm, marginal revenue is identical to marginal cost at every quantity
Indicate whether the statement is true or false
What is the effect on velocity if payments are made more often?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to payments.
If a consumer chooses a combination of goods that are inside of her budget line, than
A. the consumer is spending more than her current income. B. the consumer is maximizing her satisfaction. C. the consumer has a constant marginal rate of substitution for the two goods. D. the consumer is not maximizing her satisfaction.