In 2010, Tatum's nominal income rose by 4.6 percent and the price level rose by 1.6 percent. We can conclude that Tatum's real income:
A. may have either increased or decreased.
B. rose by approximately 6.2 percent.
C. rose by approximately 3 percent.
D. fell by approximately 13 percent.
C. rose by approximately 3 percent.
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Recall the Application. If it is not known whether the decrease in price of illegal drugs is primarily due to a change in supply, a change in demand, or equal changes in both, the equilibrium quantity of drugs
A) will increase. B) will decrease. C) will not change. D) may or may not change.
In the recent Global Economic Crisis, all of the following are causes that pushed the IS curve to the left EXCEPT
A) the negative wealth effect from the collapse of the housing bubble. B) the end of cash-out mortgage refinancing. C) growing unwillingness of banks and nonbank financial institutions to grant loan. D) slow and minimal response of the U.S. government.
Innovation in the U.S. was spurred by:
a. a free high school education in the U.S. b. an influx of capable immigrants c. an inexpensive patent system d. All of the above are correct.
If firms compete in a Cournot fashion, then each firm views the:
A. output of rivals as given. B. profits of rivals as given. C. prices of rivals as given. D. All of the statements associated with this question are correct.