Which of the following about IS relation is not correct?
A) It is the the relation between interest rate and savings.
B) It is the equilibrium condition for the goods market.
C) It stands for "Investment equals saving."
D) It shows what firms want to invest must be equal to what people and the government want to save.
A
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If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then
A) each country will produce both pizza and beer. B) the U.S. will produce beer and trade with Germany for pizza. C) the U.S. will produce pizza and trade with Germany for beer. D) All of the above.
In the above table, the cross price elasticity of demand for good Y with good X when PX rises from $10 to $12 is
A) +0.29. B) +1.83. C) +0.58. D) -0.58.
Suppose the nominal wages of workers in an economy increase by 7 percent while the price level rises by 5 percent. The real wages:
a. would increase by about 2 percent. b. would decrease by about 5 percent. c. would increase by about 50 percent. d. would increase by about 10 percent. e. would decrease by about 25 percent.
Suppose that one can read a graph that shows information about price and quantity of some product. Relying solely on the graph, is it possible to explain the relationship between the two variables?