The average number of years of schooling of workers in Argonia has increased. Which of the following is likely to be true if all other variables remain unchanged?
A) The unemployment rate in Argonia is likely to increase.
B) The income per worker in Argonia is likely to decrease.
C) The efficiency units of labor in Argonia is likely to increase.
D) The aggregate price level in Argonia is likely to decrease.
C
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Prior to the industrial revolution, except for a few rich families, everyone was _________.
Fill in the blank(s) with the appropriate word(s).
Suppose that real GDP is 10,000 and remains constant, nominal GDP is initially 30,000, inflation is 3%, and the debt-GDP ratio is 0.7. Find the largest nominal deficit that the government can run without raising the debt-GDP ratio.
What will be an ideal response?
You use $50,000 of your own money to start a catering business. During the first year you earn a 5% return on that investment. If the current interest rate is 8%, you earn an economic profit of
A. -$4,000. B. -$2,500. C. -$1,500. D. $4,000.
Refer to the diagram for a specific economy. Which of the following best describes the relationship shown by this curve?
A. The demand for labor is large when the rate of inflation is low.
B. When the rate of unemployment is high, the rate of inflation is high.
C. The rate of inflation and the rate of unemployment are inversely related.
D. The rate of inflation and the rate of unemployment are directly related.