Gretchen expects the price level to rise from 104 this year to 108 next year, and she is able to incorporate these expectations into her wage contract. If the price level rises to 106 next year instead of 108, which of the following will occur?
A) Gretchen's real wage will be unchanged.
B) Gretchen's real wage may rise or fall, depending on the unemployment rate.
C) Gretchen's real wage will fall.
D) Gretchen's real wage will rise.
D
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Explain how an economy which is presently above its balanced growth path will converge back to its balanced growth path?
What will be an ideal response?
Which of the following is the best example of a pure public good?
A. Education B. A national park C. National defense D. Cable television
Which component(s) of U.S. real GDP decreased in size relative to total U.S. real GDP from 1950 to 2000?
A. Only services. B. Only agriculture. C. Agriculture and manufacturing. D. Only manufacturing.
John has just tried on the most comfortable pair of pants that he has ever known. The pants are a(n)
A) experience good. B) credence good. C) logo good. D) information good.