Under which of the following circumstances would we observe the greatest increase in real income?
A. Nominal income falls by 2 percent and the price level falls by 10 percent.
B. Nominal income rises by 8 percent and the price level rises by 4 percent.
C. Nominal income rises by 12 percent and the price level rises by 15 percent.
D. Nominal income falls by 4 percent and the price level rises by 6 percent.
A. Nominal income falls by 2 percent and the price level falls by 10 percent.
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An increase in tuition rates for astronomy students would
a. decrease the wage rate for astronomers b. cause the demand curve for astronomers to shift to the right c. cause the demand curve for astronomers to shift to the left d. lead to future reductions in the labor supply of astronomers e. lead to a rise in the marginal revenue product of astronomers
Which of the following is true for the developing countries that moved most rapidly toward economic freedom during 1980-2005 period?
What will be an ideal response?
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.
What do economists mean by the term "sticky wage"?
A. It refers to the reluctance by employers to increase nominal wages during an inflationary period. B. It refers to a wage that is slow to adjust to its equilibrium level, creating sustained periods of shortage or surplus in the labor market. C. It refers to a breakdown in wage negotiations between employers and employee unions. D. It refers to a union negotiated wage.