We translate nominal income in any past year into constant, real dollars to:
A. understand what a salary in the past would equal in current dollars to determine how much more we have actually gained in purchasing power.
B. see what an income we were earning in the past would be equivalent to today.
C. allow us to compare changes in purchasing power over time.
D. All of these statements are true.
Answer: D
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The table shows the demand and supply schedules for student workers at on-campus venues. If the college introduces a strictly enforced minimum wage of $11.50 an hour,
who gains and who loses from the minimum wage, and is the campus labor market efficient or fair?
The statistic most often used by economists to measure the value of economic activity is ________
A) GDP B) the CPI C) labor-force participation rate D) the nominal interest rate E) the real interest rate
Corporate profits are
A) taxed at too low a rate. B) taxed only when a stockholder sells his or her shares of stock. C) taxed twice—once by the corporate tax system, and again by personal tax system when they are paid to stockholders as dividends. D) taxed three times—once by the corporate tax system, again by the personal tax system, and again as capital gains.
Domestic saving must equal domestic investment in
a. both closed and open economies. b. closed, but not open economies. c. open, but not closed economies. d. neither closed nor open economies.