Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes
a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased.
b. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage decreased.
c. your real wage increase. If your real wage rose by a greater percentage than the price level, then your nominal wage also increased.
d. your real wage decrease. If your real wage rose by a greater percentage than the price level, then your nominal wage decreased.
a
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Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, one million dollars in required reserves, and faces a required reserve ratio of ten percent
Given this information, we can say First National Bank has ________ million dollars in excess reserves. A) one B) two C) nine D) ten
If a one percent increase in the price of bananas leads to a one percent decrease in the quantity of bananas demanded, then the demand for bananas is
A) elastic. B) inelastic. C) unit-elastic. D) perfectly inelastic.
A negative growth rate will cause: a. an inward shift of an economy's production possibilities curve
b. an outward shift of an economy's production possibilities curve. c. a movement from a point inside an economy's production possibilities curve to a point on the curve. d. an economy's production possibilities curve to slope upward.
Which school of thought argues that because people anticipate the consequences of announced government policy and incorporate these anticipated consequences into their decision making, they end up undermining government policy?
a. neo-Keynesian b. Keynesian c. monetarist d. supply-side e. rational expectations