Suppose you hold $50 to buy groceries weekly and then the price of groceries increases by 5 percent. To be able to buy the same amount of groceries, what must happen to your nominal money holdings?
A) They must increase by $5.
B) They can decrease by $5.
C) They must increase by $2.50.
D) They must increase, but the amount of the increase depends on income.
C
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Aggregate demand will be affected by the purchasing power of money
Indicate whether the statement is true or false
Government works to create a competitive marketplace to help foster competition, yet it also awards patents which prevent competition. Why are both competition and the patent system essential to creating a large economic pie?
What will be an ideal response?
Someone who has the desire to work but has no exceptional abilities and has not acquired the skills necessary for a well-paying job is likely to escape poverty completely
a. True b. False Indicate whether the statement is true or false
The modern view of the Phillips curve suggests that
a. when inflation is less than anticipated, unemployment will fall below the natural rate. b. when inflation is steady, actual unemployment will equal the natural rate of unemployment. c. systematic demand stimulus policies will be unable to affect prices in the long run. d. there will be a trade-off between inflation and unemployment in the long run.