The government uses the buying power of wages in reporting changes in "nominal wages" in the economy
Indicate whether the statement is true or false
FALSE
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Why is free trade considered helpful to businesses?
a. It gives consumers more choices. b. It increases competition. c. It opens up wider markets. d. It keeps consumer prices down.
Assumptions that output is fixed and factor prices have adjusted to reach the level of full employment are:
a. useful for long-run analysis. b. necessary for short-run analysis. c. unrealistic to the extent that economists should not make such assumptions. d. always true and therefore useful both in the long run and short run.
If the price of your cell phone service increases from $70 to $105 over a period of one year and your income rises from $1,500 to $1,525, your nominal income has
A. Increased, but your real income has remained the same. B. Increased, and your real income has increased. C. Increased, but your real income has decreased. D. Decreased, and your real income has decreased.
In the Keynesian model, whenever planned saving exceeds planned investment
A. real GDP will not be influenced. B. the interest rate will remain unchanged. C. there will be unplanned inventory depletion. D. there will be unplanned inventory accumulation.