If your real income falls during a period of inflation, then your nominal income might have
A) increased more rapidly than the price level.
B) increased at the same rate as the price level.
C) increased more slowly than the price level.
D) decreased more slowly than the price level.
E) More information is needed to determine if your nominal income increased more slowly, more rapidly, or at the same rate as the price level.
C
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The figure above shows Ilene's budget line. If the price of a can of cat food rises, her budget line rotates so that the vertical intercept is
A) unchanged, but the horizontal intercept is closer to the origin. B) unchanged, but the horizontal intercept is farther away from the origin. C) farther away from the origin, but the horizontal intercept is closer to the origin. D) closer to the origin, but the horizontal intercept is farther away from the origin.
Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10 percent. The maximum loan your bank can made as a direct result of your deposit is
A) $200. B) $1,800. C) $2,000. D) $20,000.
Economists use the word investment to refer to the portion of income that is:
A. spent on productive inputs, such as factories, machinery, and inventories. B. not immediately spent on consumption of goods and services. C. placed in an individual's savings account. D. in any interest-bearing account.
The efficiency wage model is an explanation of wage __________ and thus a support for the ____________________ view
A) flexibility; Keynesian B) flexibility; classical C) inflexibility; Keynesian D) inflexibility; classical