Consternation Corporation has an agreement with its workers to index completely the wage of its employees using the CPI. Consternation Corporation currently pays its production line workers $7.50 an hour and is scheduled to index their wages today. If the CPI is currently 130 and was 125 a year ago, the firm should increase the hourly wages of its workers by
a. $0.04.
b. $0.29.
c. $0.30.
d. $0.50.
c
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Which of the following would NOT be a cause for an increased American demand for the Mexican peso?
A) The United States having lower interest rates than Mexico B) Increased American demand for Mexican goods C) The expectation by speculators that the value of the peso is edging up D) More economic expansion in the United States E) None of the above.
The period of growth in real GDP between the trough of the business cycle and the next peak is called the
a. recessionary phase. b. expansionary phase. c. contractionary phase. d. cyclical phase.
The minimum efficient level of production refers to the production level in the long run that spreads setup costs out just enough to make production profitable.
Answer the following statement true (T) or false (F)
Refer to the above figure. A budget deficit occurs when real national income is
A. Y3. B. Y1. C. Y2. D. None of these: cannot be determined given the information.