Which of the following is an example of a price ceiling?
A. Limits on interest rates charged by credit card companies
B. Subsidies for apartment rent in major cities
C. Minimum-wage laws for unskilled workers
D. Price supports for agricultural products
A. Limits on interest rates charged by credit card companies
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Refer to Table 9-19. Looking at the table above, what is the rate of growth of the average price level from 2015 to 2016?
A) 1% B) 2% C) 3.5% D) 4.76% E) 5.25%
Suppose your nominal income this year is 5 percent higher than last year. If the inflation rate for the period was 3 percent, then your real income was:
a. increased by 1.67 percent. b. increased by 2 percent. c. increased by 8 percent. d. decreased by 0.6 percent.
Other things the same, a decrease in the price level causes real wealth to
a. fall, interest rates to fall, and the dollar to appreciate. b. fall, interest rates to rise, and the dollar to depreciate. c. rise, interest rates to rise, and the dollar to appreciate. d. rise, interest rates to fall, and the dollar to depreciate.
The main difference between new classical and new Keynesian theory is with respect to the assumption of
A) how expectations are formed. B) how flexible wages and prices are. C) the slope of the SRAS curve. D) the slope of the AD curve.