Sharisse brags to her mother that her starting salary as a management trainee is $36,000, much higher than her mother's starting salary of $21,000 as a management trainee several years ago
If the CPI the year Sharisse begins work is 181.2 and the CPI the year her mother started work was 109.1, Sharisse is
A) wrong. Adjusting for price changes, her salary is less than her mother's salary.
B) correct. Adjusting for quantity changes, her salary is more than her mother's salary.
C) correct. Adjusting for price changes, her salary is more than her mother's salary.
D) wrong. Adjusting for quantity changes, her salary is less than her mother's salary.
E) maybe wrong and maybe right. Adjusting for quantity changes, her salary is less than her mother's salary but with the information given we are unable to further adjust for price changes.
C
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Which of the following is not an example of inflation causing a redistribution of income because the inflation was unanticipated?
A) Firms have to hire an extra worker to change prices in its store because of inflation. B) A worker receives a raise in salary that is less than the rate of inflation, because management under-predicted inflation. C) A bank collects a lower amount of interest from a loan because inflation was under-predicted. D) A firm signs a 3-year contract with a union based on a 2 percent anticipated rate of inflation per year, and the actual rate of inflation ends up being 7 percent per year.
An increase in the US demand for British pounds causes
a. An appreciation of the pound b. Depreciation of the dollar c. None of the above d. Both a and b
When dealing with strategic trade policy, one practical problem for government is the likelihood of retaliation by foreign governments
a. True b. False Indicate whether the statement is true or false
The inflation-adjusted value of final goods and services produced in the United States measures:
A. Nominal GDP. B. Real GDP. C. Per capita GDP. D. GDP per worker.