The nominal rate of interest is
Answer : the rate observed in the market that includes an inflation premium
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The typical American family spends about ____ percent of its budget on goods and the remainder on services.
A. 22 B. 32 C. 66 D. 80
The "work effort argument" criticizing traditional economic analyses of the minimum wage implies
A. any increase in the nominal minimum wage reduces short-run aggregate supply. B. increased real GDP should result from any increase in the nominal minimum wage. C. increased real GDP should result from any reduction in the nominal minimum wage. D. reduced real GDP should result from any increase in the nominal minimum wage.
Label the maximum profit output in the above graph.
The public interest theory of industrial regulation contends that:
A. while industrial regulation is sound in theory, bureaucrats allow monopolists to obtain excessive profits. B. regulated monopolies are tantamount to legal cartels. C. the objective of regulation is to protect the public from the market power inherent in natural monopolies. D. firms in some industries want to be regulated.