If product prices decrease more than nominal wages decrease, then the real value of wages will increase.
Answer the following statement true (T) or false (F)
True
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In a certain economy, the components of aggregate spending are given by:C = 60 + 0.6(Y - T) - 1,000rI = 200 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 6 percent?
A. 825 B. 450 C. 925 D. 330
Bananas and apples are substitutes. When the price of bananas rises, and a technological advance in apple production occurs at the same time
A) the equilibrium price of apples rises and the equilibrium quantity of apples falls. B) the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall. C) the equilibrium quantity of apples rises and the equilibrium price of apples might rise or fall. D) the equilibrium price of apples rises and the equilibrium quantity of apples rises.
The nominal interest rate equals the:
What will be an ideal response?
The consumption function shows that when disposable income increases by one dollar, consumption expenditure
A) does not change. B) increases by more than a dollar. C) increases by one dollar. D) decreases by less than a dollar. E) increases by less than a dollar.