Inflation is defined as an increase in:
a. real wages of workers.
b. real GDP.
c. the average price level.
d. all consumer products.
c
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Foreign repercussions of changes in domestic imports cause the true domestic spending multiplier to be less than 1/(MPS+MPI)
a. True b. False Indicate whether the statement is true or false
Recall the Application about craft beer and the increase in the price of hops to answer the following question(s).According to the Application, why did the price of hops increase?
What will be an ideal response?
An increase in which of the following variables will cause a reduction in the amount of money individuals wish to hold in the current period?
A) current income B) the current nominal interest rate C) the current real interest rate D) expected future income E) all of the above
An increase in the wage rate will change
A. the amount of labor employed, and it may also change the amount of other inputs employed. B. the price the firm charges for the product, but it will not affect the demand for any of the inputs. C. only the amount of labor hired. D. the firm?s profit-maximizing level output, but not its usage of inputs.