Which of the following statements about the nominal and the real wage rates is correct?
A) The nominal wage rate equals the real wage rate divided by the CPI and then multiplied by 100.
B) The nominal wage rate is measured in the dollars of a base year.
C) The real wage rate is measured in current year dollars.
D) The real wage rate indicates how many goods and services can be purchased with an hour's labor.
E) The real wage rate equals the nominal wage rate multiplied by the CPI then divided by 100.
D
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Explain what an entrepreneur is and its function
What will be an ideal response?
The Federal Reserve econometric model estimates that a 1 percent increase in government spending, with the money supply held constant, will
A) increase real GDP by 1 percent per year for two years. B) increase real GDP by 2 percent per year for two years. C) decrease real GDP by 1 percent per year for two years. D) have no effect on real GDP.
Which of the following statements about agriculture in the U.S. is not correct?
a. From the 1950s to today, agricultural output has increased about five times. b. Because technological improvements increase the supply of a product for which demand is inelastic, an individual farmer would be better off not adopting the new technology. c. Increasing the supply of agricultural products typically benefits consumers but harms farmers. d. Technological improvements typically increase supply and decrease revenue for farmers.
Discuss the various components of wealth
What will be an ideal response?