Jackie saves $100 and receives $106 the next year. During the same year, the price of the basket of goods that she purchases increases from $100 to $104 . What is nominal interest rate on Jackie's saving? What is the real interest rate on Jackie's saving? What was the inflation rate?
nominal interest rate = 6%, real interest rate = 2%, inflation rate = 4%
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Give examples of factors that decrease aggregate supply. Which way does the AS curve shift?
What will be an ideal response?
GDP is supposed to measure
A) the volume of production within a country's borders. B) the volume of services generated within a country's borders. C) the volume of production of a country's output. D) GNP plus depreciation. E) net unilateral transfers from foreigners.
The primary problem with entitlements, from a budgetary perspective, is that _____
a. expenditures are much harder to control than for non-entitlements b. they add to the uncertainty of the budgetary process because it is difficult to predict how many individuals will be eligible c. it is impossible to control spending on entitlements once created d. a and b e. all of the above
The most commonly used measures of elasticity are
A. income elasticity of demand and price elasticity of supply. B. price elasticity of demand and price elasticity of supply. C. cross-price elasticity of demand and cross-price elasticity of supply. D. price elasticity of demand and cross-price elasticity of supply.