Suppose the base reference period is 1982-1984. If your nominal wage rate is $8.00 per hour when the CPI is 180, what is your real wage rate in 1982-1984 dollars?
What will be an ideal response?
The real wage rate equals 100 times the nominal wage rate divided by the CPI. Hence the real wage rate equals 100 × ($8.00)/(180 ) = $4.44.
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The Ricardo-Barro effect of a government budget deficit refers to
A) a change in private savings supply. B) a large crowding out effect from a government budget deficit. C) a large crowding out effect from a government budget surplus. D) the international impact of government deficits.
In November 2008, Grand Canyon Education chose to finance expansion by offering ownership in its firm. These owners of Grand Canyon Education the are entitled to a share of the firm's profits. This financing is an example of ________
A) a mortgage B) a bond C) issuing stock. D) gross investment
In peak-load pricing,
A) marginal revenue is equal in both periods. B) marginal revenue in the peak period is greater than in the off-peak period. C) marginal revenue in the peak period is less than in the off-peak period. D) the sum of the marginal revenues is greater than the sum of the marginal costs.
An increase in disposable income would tend to shift aggregate demand right
a. True b. False Indicate whether the statement is true or false