Which of the following statements is TRUE if your money income stays the same but the price of one good that you are buying goes up?
A) Your effective purchasing power falls.
B) Your nominal income has been decreased.
C) You will have to reduce the quantities you purchase of all goods.
D) Your real income has increased.
A
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Average cost equals
A. change in total cost/change in quantity. B. total cost/quantity. C. total cost ? total variable cost. D. total cost ? total fixed cost.
The loan supply curve has a positive slope
A. for all savers. B. only for savers with fixed accumulation targets. C. for all savers except those with fixed accumulation goals. D. only for those contemplating retirement.
A cartel maximizes industry profit by:
a. eliminating quotas. b. producing at the kink in its demand curve. c. producing where MR = MC. d. giving secret price concessions. e. producing more output than a monopoly would.
The aggregate demand curve shows the ________.
A. inverse relationship between the price level and the quantity of real GDP purchased B. direct relationship between real-balances and the quantity of real GDP purchased C. direct relationship between the price level and the quantity of real GDP produced D. inverse relationship between interest rates and the quantity of real GDP produced