The nominal wage represents:
a. the wage measured in terms of the quantity of goods and services a worker can purchase with it
b. the wage measured in terms of the dollar value of the goods and services a worker can purchase with it.
c. the real wage from which personal taxes has been deducted.
d. the standard of living of workers across time.
e. the change in real wage brought about by changes in aggregate supply.
b
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Suppose that two soft drink manufacturers, Fizzy Pop and Spritzy Soda, agree to charge the same prices for their soft drinks. This practice is
A) always legal under the antitrust laws. B) legal as long as Herfindahl-Hirschman index is less than 1,000. C) legal as long as the firms had a cost justification for setting prices. D) always illegal under the antitrust laws.
Early Keynesians concluded that changes in monetary policy had no impact on aggregate output because early empirical studies found no linkage between movements in ________ and ________
A) nominal interest rates; investment spending B) real interest rates; investment spending C) money supply; aggregate output D) investment spending; aggregate output
The Keynesian short-run aggregate supply curve in the simplified Keynesian model is unrealistic because
A) a vertical curve does not make economic sense. B) prices and wages will never decrease. C) the classical model is better in explaining how the economy operates. D) some price adjustments do take place in the short run.
The Second Bank of the United States rose to prominence under the leadership of:
a. Alexander Hamilton. b. Andrew Jackson. c. Henry Clay. d. Nicholas Biddle.