The real interest rate is equal to the nominal interest rate minus:
A. accounting profit.
B. economic profit.
C. taxes.
D. the inflation rate.
Ans: D. the inflation rate.
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Which of the following is the best example of "depreciation"?
A) An individual worker becoming tired at the end of an eight-hour work day. B) The notion that individuals obtain less utility from paying taxes than giving to charities. C) A truck used by a pizzeria to make deliveries is worth less at the end of one year. D) A rise in prices depreciating the value of consumers' real incomes.
A change in the price of a good will shift the demand for labor producing that good
Indicate whether the statement is true or false
The Phillips curve model suggests that a negative demand shock will raise unemployment and reduce inflation. A negative supply shock will have the same effect.
Answer the following statement true (T) or false (F)
Inflation caused by a rise in the prices of inputs is referred to as:
A. Cost-push inflation B. Demand-pull inflation C. Unanticipated inflation D. Hyperinflation