Assume that the professors at a local college have gone without a pay increase for 4 years during a tough time. Suppose that things start to look up and the President of the college wants to make up for lost time. If the CPI in 2002 was 150 and 175 in 2006, how much will salaries have to increase to bring the faculty back up to their real income from 2002?
a. 175.0%
b. 150.0%
c. 25.0%
d. 16.7%
e. 14.3%
D
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Among the benefits of privatization of state owned enterprises is
(a) increased employment. (b) improved efficiency. (c) reduced pollution. (d) all of the above. (e) none of the above.
In Figure 4-6 above, with IS0 shifting to IS1 against the upward-sloping LM curve, at point 1
A) there is an excess demand for money. B) there is an excess supply of money. C) the demand for output exceeds Y1. D) the demand for output is below Y1.
Last year the price of a dozen eggs was $1, and this year the price is $1.30. Which of the following does NOT express this price change accurately?
A) The price increased 30 percent. B) The price increased by 30 cents. C) If last year was the base year, the index number for this year would be 130. D) If this year is the base year, the index number for last year would be 130.
Nick has a certain amount of money that he wants to invest in a completely risk-free manner. He would most likely: a. deposit it in a bank or credit union
b. invest in a mutual fund. c. purchase shares on the stock market. d. hide the money somewhere in his or her home.