If the aggregate price level ________, but nominal wages stay fixed, real wages ________
A) falls; fall B) rises; fall C) rises; remain fixed D) falls; remain fixed
B
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In one of the earliest studies on the link between interest rates and money demand using United States data, James Tobin concluded that the demand for money is
A) sensitive to interest rates. B) not sensitive to interest rates. C) not sensitive to changes in income. D) not sensitive to changes in bond values.
The distinction between endogenous and exogenous variables is
A) that exogenous variables are determined inside the model and endogenous variables are determined outside the model. B) dependent on the sample size: for n > 100, endogenous variables become exogenous. C) depends on the distribution of the variables: when they are normally distributed, they are exogenous, otherwise they are endogenous. D) whether or not the variables are correlated with the error term.
All of the following are barriers to entry in an industry EXCEPT
A. governmental restrictions. B. economies of scale. C. a patent. D. low marginal tax rates.
The assumption of completeness means that
A) the consumer can rank all possible consumption bundles. B) more of a good is always better. C) the consumers can rank all affordable consumption bundles. D) all preferences conditions are met.