A clause in a contract that automatically increases wages to account for increases in the price level is
A. a COLA.
B. the GDP deflation.
C. the PCE index.
D. the real rate of interest.
Answer: A
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If you get an 8 percent increase in your nominal income, your real income
A) definitely increases. B) increases only if the inflation rate is more than 8 percent. C) increases only if the inflation rate is equal to 8 percent. D) increases only if the inflation rate is less than 8 percent. E) increases if the inflation rate is more than or equal to 8 percent.
Jerry is studying three nights per week and his grade point average is 3.1. He wants a higher GPA and decides to study an extra night each week. His GPA now rises to 3.5
Had Jerry not decided to study an extra night, he would have spent this night with his friends. What is Jerry's marginal benefit from studying for one additional night a week? What is his marginal cost of increasing the study time by one night per week? Why does Jerry decide to study an extra night?
Use the information in the table above to calculate the value of net exports
A) $10 million B) $0 C) -$10 million D) $30 million
Given the table above, suppose consumption in period two is $40,000. Then, the interest rate rises to five percent, and period-two consumption does not change. We may infer that ________
A) the income effect is stronger than the substitution effect B) the substitution effect is stronger than the income effect C) the substitution and income effects cancel out D) this consumer has a binding borrowing constraint