The principal difference between conventional accounting and economic analysis of inflation is that
a. accountants adjust nominal values for inflation.
b. accountants adjust real values for inflation.
c. economists adjust nominal values for inflation.
d. economists adjust real values for inflation.
c
You might also like to view...
Refer to Table 18.1. Panama has a comparative advantage in
A) gloves. B) hats. C) both hats and gloves. D) neither hats nor gloves.
The efficiency wage model can be modified to allow real wages to vary over the business cycle by assuming that
A) workers' effort may depend on the unemployment rate and the real wage. B) during a recession, labor supply will decrease, reducing the efficiency wage. C) during a recession, productivity will fall, causing a reduction in the efficiency wage. D) during a boom, labor demand will increase, causing the efficiency wage to rise.
In the market for Canadian dollars measured in US dollars, the supply of US dollars is
a. The supply of Canadian dollars b. The demand for Canadian Dollars c. The demand for US dollars d. None of the above
If Americans develop a greater appreciation for Mexican-made goods, we should observe the following change in the dollar-peso market:
A. the demand curve for pesos shifts left. B. the supply curve of dollars shifts left. C. the supply curve of dollars shifts right. D. the demand curve for dollars shifts right.