If the nominal interest rate is 5 percent, and the rate of inflation is 3 percent, then the real interest rate is equal to
a. 2 percent.
b. 0.6 percent.
c. 1.7 percent.
d. 15 percent.
a
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Sticky Cakes is a bakery. A decrease in the wage rate that Sticky Cakes pays its workers
A) does not shift its MC curve or its ATC curve. B) shifts its MC curve downward but not its ATC curve. C) shifts both its MC curve and its ATC curve downward. D) does not shift its MC curve but shifts its ATC curve downward.
While the demand for beer is relatively price inelastic, the price elasticity of demand for a particular brand is relatively high, due in large part to availability of close substitutes
Indicate whether the statement is true or false
If minimum wage legislation does cause unemployment, then:
A. those who are lucky enough to land jobs benefit. B. those who become unemployed as a result lose. C. firms will not bear the entire burden of the higher cost of employment. D. All of these are true.
The CFNAI is a
A. leading index based on 85 monthly variables. B. coincident index based on 85 monthly variables. C. coincident index based on variables released with different frequencies. D. leading index based on variables released with different frequencies.