According to the classical dichotomy, which of the following is influenced by monetary factors?
a. the real wage.
b. the real interest rate.
c. the nominal interest rate.
d. All of the above are correct.
c
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The figure shows the market for rental units in Gladstone. The market is in equilibrium. The government now introduces a rent ceiling of $500 a month. The price of a rental unit ________ and the number of units rented ________
A) increases by $500 per month; decreases B) increases by $100 per month; increases C) decreases by $100 per month; decreases D) remains the same; remains the same
Which of the following statements is true?
A) If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. B) An increase in demand causes a change in equilibrium price; the change in price does not cause a further change in demand or supply. C) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. D) A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand.
John Smith leaves his job in New York to go to California in hopes of finding a better one. If John Smith is unemployed while searching for a job in California, economists would consider him to be
A) frictionally unemployed. B) structurally unemployed. C) cyclically unemployed. D) naturally unemployed.
Demand is more elastic
a. in the short run than in the long run b. for necessities than for luxuries c. for food than for hamburgers d. for goods with many substitutes than for goods with only a few e. for broadly defined goods than for narrowly defined ones