Real income can be determined by:
A. dividing the price level by nominal income.
B. inflating nominal income for inflation.
C. dividing the annual rate of inflation into the number "70."
D. deflating nominal income for inflation.
D. deflating nominal income for inflation.
You might also like to view...
The demand for Mexican tomatoes by an American food grocery chain creates a
A) demand for the U.S. dollar. B) demand for an interest rate differential. C) supply of Mexican pesos. D) supply of U.S. dollars.
The table above shows three production methods to produce 100 automobiles per day. Which of the three methods is technologically efficient?
A) Method A only B) Method B only C) Method C only D) Method A, B and C are all technologically efficient.
If Canada has a comparative advantage relative to Mexico in the production of timber, then
A) the opportunity cost of production for timber is lower in Canada than in Mexico. B) the explicit cost of production for timber is lower in Canada than in Mexico. C) the implicit costs of production for timber are higher in Canada than in Mexico. D) the average cost of production for timber is lower in Canada than in Mexico.
Refer to Figure 12-9. At price P2, the firm would produce
A) Q2 units. B) Q3 units. C) Q4 units. D) zero units.