Suppose the economy includes two distinct groups of people: wage earners and goods sellers. If the price level falls by 10 percent and nominal wages remain unchanged,
a. there will be no redistribution of purchasing power because all wage earners in the U.S. economy receive indexed wages
b. income will be redistributed from wage earners to goods sellers
c. income will be redistributed from goods sellers to wage earners
d. real wages will fall by 10 percent
e. real wages will remain unchanged
C
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As the economy contracts, tax revenues
A. rise and transfer payments rise, causing the economy to contract by more than it would in the absence of automatic stabilizers. B. rise and transfer payments fall, causing the economy to contract by less than it would in the absence of automatic stabilizers. C. fall and transfer payments fall, causing the economy to contract by more than it would in the absence of automatic stabilizers. D. fall and transfer payments rise, causing the economy to contract by less than it would in the absence of automatic stabilizers.
Write the formula to find the present value of $x to be paid in n years
Total variable costs ________ with decreasing output.
A. always decrease B. initially increase and then decrease C. always increase D. initially decrease and then increase
A tradeoff between inflation and unemployment is shown directly by the __________ curve
A) Fisher B) Phillips C) Friedman D) aggregate demand