In order to determine if the quantity of goods and services that an hour's work can buy has increased or decreased between 2000 and 2012, one should compare the
A) 2000 nominal wage with the 2012 nominal wage.
B) 2000 real wage with the 2012 nominal wage.
C) 2000 real wage with the 2012 real wage.
D) 2000 nominal wage with the 2012 real wage.
E) 2000 nominal wage with the 2012 nominal wage and the 2000 real wage with the 2012 real wage because both are important factors determining if workers can buy more or fewer goods with an hour's work.
C
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Which one of the following is an example of discretionary fiscal policy used to correct an inflationary gap?
A) an increase in government expenditures approved by Congress B) decrease in the money supply by the Federal Reserve C) a tax increase passed into law by Congress D) an agreement among major banks to lower interest rates
Why is the Doha Round called the Doha Development Round?
What will be an ideal response?
Assuming that money demand is completely interest insensitive, the
a. LM schedule will be horizontal. b. LM schedule will be vertical. c. IS schedule is vertical. d. IS schedule is horizontal.
The excess supply created when governments impose a price floor is:
a. shrinking as the floor rises. b. the difference between the old quantity supplied and new quantity demanded. c. the difference between the new quantity supplied and the old quantity demanded. d. the difference between the new quantity supplied and the new quantity demanded. e. actually efficient because prices are higher for suppliers.