What is the national income identity for an open economy?
What will be an ideal response?
Y = C + I + G + EX - IM
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If a private wage contract is agreed upon with a cost of living adjustment such that wage hikes are equal to increases in the CPI,
A) the employer benefits because wages will rise less than the change in actual prices. B) workers exactly keep pace with changes in the cost of living. C) workers benefit because the CPI increases more rapidly than does the cost of living. D) the CPI bias means that workers benefit if the price level rises and the employer benefits if the price level falls. E) the CPI bias means that workers benefit if the price level falls and the employer benefits if the price level rises.
Why does the presence of imperfect information lead to inefficiency?
What will be an ideal response?
In the United States, a patent gives the patent holder exclusive rights to an invention for typically how many years?
A) 20 B) 5 C) lifetime of patent holder D) 15
One reason that people hold money is to pay for unexpected car repairs and other unpredictable expenses. This motive for holding money is called:
A. transactions demand. B. precautionary demand. C. speculative demand. D. noncyclical demand.