Households increase the quantity of labor supplied when the
A) real wage rate rises because the opportunity cost of not working rises.
B) income tax rises because an increase in the income tax increases the demand for labor.
C) nominal wage rate falls because the opportunity cost of not working rises.
D) nominal wage rate rises because the real wage rate must also rise.
E) real wage rate rises because the opportunity cost of not working falls.
A
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Central banks that have a hierarchical mandate with inflation targeting basically are saying:
A. hitting the inflation target comes first, everything else comes second. B. the inflation target is the second most important goal after economic growth, which is always the most important goal for monetary policymakers. C. hitting the inflation target is the only objective. D. hitting the inflation target is the first priority after all other stated objectives are reached.
Suppose that the equilibrium price of apples decreases and the equilibrium quantity of apples increases. This is best explained by:
A. an increase in the demand for apples. B. an increase in the supply of apples. C. a decrease in the demand for apples. D. a decrease in the supply of apples.
Which scenario best demonstrates how money functions as a unit of account?
a. Haley knows that a gel pen costs $1.50 and a jar candle is $9, so a candle is equal to six pens. b. Gregory gives Carlito $100 and receives a new pair of jeans in exchange. c. Miguel makes a payment on his car loan every month. d. Each quarter, Celeste deposits money into a Roth IRA to save for her retirement.
Hyperinflation may stimulate significant increases in real output in an economy.
Answer the following statement true (T) or false (F)