If the inflation premium is 3% and the real interest on a loan is 4%, then the nominal interest rate is:
A. 1%
B. -1%
C. 7%
D. 0.75%
C. 7%
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Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $12, the firm
A) incurs an economic loss, but will not shut down. B) will not shut down in the short run, but will leave the industry in the long run. C) will shut down. D) is breaking even.
What are the total profits if four units are produced? a. 40
b. 70. c. -30. d. 20.
If the current level of GDP is below full employment, the level of GDP can be raised by:
A. increasing the money supply. B. raising taxes. C. reducing government spending. D. raising the interest rates.
Including discouraged workers in the calculation of the unemployment rate would
A. not change the reported rate. B. increase the reported rate. C. change the reported rate, but in an unpredictable manner. D. lower the reported rate.