Assume that your nominal wage was fixed at $15 an hour, and the price index rose from 100 to 105. In this case, your real wage has:
A. Decreased to $10
B. Increased to $15.75
C. Decreased to $14.29
D. Increased to $20
C. Decreased to $14.29
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Creative destruction refers to the process where
a. new products and methods of production are continuously replacing old ones b. producing more of one good causes you to produce less of another c. everybody involved is made worse off d. new ways to destroy buildings are employed
Pick the economic variable that is countercyclical
a. Government transfer payments b. Prices c. Consumption d. Nominal interest rates e. All of the above are countercyclical variables
My roommate ________. This is an example of an external benefit.
A. plays the drums whenever I am home B. sings (badly) in my presence C. cleans up after his dog and keeps it from eating my ferrets D. smokes cigars in the kitchen whenever I make dinner
When the government's expenditures exceed its tax revenue, the budget
A) has a deficit and the national debt is increasing. B) is balanced and the national debt is increasing. C) has a surplus and the national debt is increasing. D) has a deficit and the national debt is decreasing. E) None of the above because by law the government's expenditures cannot exceed its tax revenue.