When we say the cost of living has gone down, we mean that, looking broadly over a range of goods and services:
A. a dollar buys less today than it used to buy.
B. a dollar buys more today than it used to buy.
C. a dollar buys the same today as it used to buy.
D. our income has increased to match the cost of those goods.
B. a dollar buys more today than it used to buy.
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Labor productivity is $20 per hour and aggregate hours are 400 billion hours
a. What does real GDP equal? b. Because of technological advances, labor productivity doubles to $40 per hour. Furthermore, assume that aggregate hours decrease to 300 billion hours. What does real GDP equal?
What caused a major economic shock in August 2007?
A) U.S. mortgage market B) war in Iraq C) U.S. bond market D) technology stocks E) misreporting from Asian markets
The PPF determines
A) all possible outcomes for a given wage. B) the set of feasible outcomes. C) given leisure, how much consumption a household wants. D) the share of consumption in output.
The slope of the demand for loanable funds curve represents the
a. positive relation between the real interest rate and investment. b. negative relation between the real interest rate and investment. c. positive relation between the real interest rate and saving. d. negative relation between the real interest rate and saving.