Suppose you received a 5 percent increase in your nominal wage. Over the year, inflation ran about 2 percent. Which of the following is true?
a. Your real wage increased.
b. Your nominal wage decreased.
c. Both your nominal and real wages decreased.
d. Although your nominal wage rose, your real wage decreased.
a
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Damian wants to start a business where he is the only owner and the company does not issue stock. The type of business Damian wants to start is a
A) sole proprietorship. B) corporation. C) partnership. D) Any of the above could be correct.
The analysis of Friedman and Phelps argues that an expected change in inflation has no impact on the unemployment rate
a. True b. False Indicate whether the statement is true or false
Explain the meaning of the term dead capital, and discuss why its existence retards economic growth.
What will be an ideal response?