During 2010, a country reports that its price level fell and the money wage rate did not change. These changes led to
A) a lower real wage rate, lower profits, and a decrease in the quantity of real GDP supplied.
B) a higher real wage rate, lower profits, and a decrease in the quantity of real GDP supplied.
C) a higher real wage rate, higher profits, and an increase in the quantity of real GDP supplied.
D) a lower real wage rate, higher profits, and an increase in the quantity of real GDP supplied.
E) no change in the real wage rate and an increase in aggregate demand.
B
You might also like to view...
If a seller charges a buyer the exact price the buyer is willing to pay, then the buyer would
A) not buy the good. B) receive the maximum consumer surplus. C) receive no benefit from the good. D) receive no consumer surplus from that unit of the good. E) suffer a deadweight loss from buying the good.
The Consumer Price Index (CPI) measures inflation for every individual
A) True, the weights used in calculating the CPI are adjusted for every individual in the country. B) True, people all face the same prices and therefore face the same inflation. C) False, the CPI uses weights based on how much each product represents in the typical household budget. D) False, the CPI doesn't measure inflation.
Saving is necessary for production because
a. more roundabout production is better b. less roundabout production is better c. production takes time d. production is expensive e. production requires labor
Brittany provides manicures at the only salon in town. Her marginal cost is constant at $5 per client, her fixed cost is $25 per day, and she is able to do 8 manicures per day. On a given day, half of her clients are willing to pay $15 for a manicure; half are willing to pay only $10 . If she charges $15 for those willing to pay a higher price and $10 to her other clients, then her maximum daily
profit equals a. $55 b. $100 c. $60 d. $35 e. $75