Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the main factor that will readjust the economy is the:
a. Price level.
b. Real GDP.
c. Nominal and real exchange rates.
d. Real risk-free interest rate.
e. Money supply.
.D
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Define the nominal wage rate and the real wage rate. Can the nominal wage rate increase faster than the real wage rate?
What will be an ideal response?
Which of the following is a major category for the Consumer Price Index?
A. capital goods B. interest on savings C. money D. medical care
A monopsonist in the labor market has
A) a perfectly elastic labor supply. B) a decreasing average variable cost. C) an upward sloping labor supply curve. D) a downward sloping marginal revenue product curve.
"The Consumer Price Index increased by 4.2 percent in the first quarter of this year." What type of statement is this?
a. normative b. negative c. positive d. subjective e. biased