What is the difference between the nominal interest rate and the real interest rate?
What will be an ideal response?
The nominal interest rate is the stated interest rate on a loan, while the real interest rate is the nominal interest rate minus the inflation rate.
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If capital per hour of labor increases, real GDP per hour of labor
A) decreases for a given level of technology. B) increases because the level of technology increases. C) increases for a given level of technology. D) decreases because the level of technology decreases.
The cyclical deficit is
A) the amount by which the actual government budget deficit exceeds the structural deficit. B) the amount by which structural deficit exceeds the actual budget deficit. C) the same as the structural deficit. D) what the budget deficit would be if the economy were operating at the natural real GDP level.
U.S. educational achievements ________
A) began to stagnate in the 1970s B) have always fallen behind our European and Asian counterparts C) have not had a measurable effect on U.S. growth rates D) have not been duplicated outside the U.S.
If unions are successful in negotiating a wage higher than the market equilibrium wage, and also guarantee employers that they can hire as many labor hours as they desire per week at the union wage,
A. the quantity of labor demanded will exceed the quantity supplied at the union wage. B. the quantity of labor demanded will equal the quantity supplied at the union wage. C. the quantity of labor demanded will fall short of the quantity supplied at the union wage. D. all workers who join the union will be guaranteed a job.