Taxes on capital gains and interest decline as inflation rates increase
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose the population of Timmy Town is 1000 people and the working-age population is 800. If 200 of these people are unemployed, the unemployment rate in Timmy Town is
A) 1/4 × 100. B) 1/5 × 100. C) 1/8 × 100. D) 2 percent. E) There is not enough information provided to calculate the unemployment rate.
Which of the following is likely to cause a rise in the wage rate and a decrease in the number of workers hired in a garage?
A) The shutdown of a nearby garage B) A decrease in the price of the services provided by the garage C) An increase in the price of the services provided by the garage D) The opening of a new garage nearby that offers higher wages to its workers
Suppose for every dollar change in household wealth, consumption expenditures change by $0.05
If real household wealth declines by $45 billion, potential GDP is $120 billion, and the multiplier effect for the second year after an expenditure shock is 1.1, what is the total change in output relative to potential for the second year? A) -1.28% B) -1.73% C) -2.06% D) -5.78%
If the income elasticity of demand for dental services is –0.6, this means that people purchase more dental services when the price is lowered
Indicate whether the statement is true or false