If the price level is fixed, changes in nominal income and changes in real income ______.
a. have an inverse relationship because there are no changes in aggregate supply.
b. remain equal because there is no rate of inflation to account for.
c. remain equal because aggregate income will neither rise nor fall.
d. have an inverse relationship because full employment has been reached.
b. remain equal because there is no rate of inflation to account for.
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Giving in-kind transfers will ensure that people get proper amounts of nutrition.
A. True B. False C. Uncertain
Income generated by a nation's domestic production
a. is less than its domestic production. b. is equal to its domestic production. c. is greater than its domestic production. d. could be less than, equal to, or greater than its domestic production.
The main difference between European and American options is:
A. American option holders have more options than European option holders. B. European options cannot be resold. C. European option holders can exercise the option prior to expiration. D. holders of European options have more options than holders of American options.
There are often wide differences between the productivity levels of different factories making the same products because
A. some companies are more willing to take the risk of adopting a new technology. B. patent protections limit the benefits of innovation to the firm responsible for the innovation. C. the intensity of competition varies from industry to industry. D. some factories are located in innovation clusters and others are not.