If you feel you are better off because you receive a 10 percent raise even when the price level also increases by 10 percent, then you are a victim of the
A) real purchasing power effect. B) money income effect.
C) real income effect. D) money illusion.
D
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Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, what is the market quantity demanded at a price of $3?
A) 6 B) 9 C) 15 D) 20
Your text suggests the Fed
A) is a slave to Congress. B) is totally free from political pressure. C) probably cannot pursue monetary policies that completely contradict the federal government's fiscal policies. D) is a hoax and a shame that ought to be abolished.
Given the budget line in the figure above, the combination of chips that is NOT affordable is
A) a. B) b. C) c. D) d.
Which of the following will NOT shift the aggregate demand curve to the right?
A) a decline in the price level B) an increase in government expenditures C) an increase in investment D) an increase in the money supply