Real wages more accurately reflect the payment to labor because they are adjusted for the effects of inflation
a. True
b. False
Indicate whether the statement is true or false
True
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In a certain economy, the components of aggregate spending are given by: C = 100 + 0.9(Y - T) - 500rI = 150 - 1,000rG = 200NX = 50T = 100 Given the information about the economy above, what would be the impact on short-run equilibrium output of a one-percentage-point decrease in the real interest rate from 6 percent to 5 percent?
A. Short-run equilibrium output would decrease by 150 units. B. Short-run equilibrium output would increase by 150 units. C. Short-run equilibrium output would decrease by 1,500 units. D. Short-run equilibrium output would increase by 15 units.
Johnny's Shop-and-Pay is a regional grocery chain, and their marketing manager is trying to determine the profit-maximizing coupon program for the store's laundry detergent brand
Coupon users at the store have an elasticity of demand for this product that equals -3, and the elasticity of demand for non-users of the coupon for the store brand equals -1.5. If the full retail (undiscounted) price of the detergent is $10 per box, what is the optimal discount to provide for coupon users? A) 25% off B) 50% off C) 75% off D) The optimal strategy is to charge the same price to both groups
The more human capital workers have, the:
A. less productive they are. B. more productive they are. C. lower the value of their marginal product. D. more technology they will require for their job.
Inflation can be caused by
a. increases in aggregate demand only b. increases in aggregate supply only c. decreases in aggregate supply only d. increases in aggregate supply or decreases in aggregate demand e. increases in aggregate demand or decreases in aggregate supply