If you get an 8 percent increase in your nominal income, your real income
A) definitely increases.
B) increases only if the inflation rate is more than 8 percent.
C) increases only if the inflation rate is equal to 8 percent.
D) increases only if the inflation rate is less than 8 percent.
E) increases if the inflation rate is more than or equal to 8 percent.
D
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What is true at the profit-maximizing quantity for a perfectly competitive firm but not for a nondiscriminating monopoly?
a. Price equals marginal cost. b. Price is greater than marginal cost. c. Marginal revenue equals marginal cost. d. Marginal revenue is less than marginal cost. e. Marginal revenue is greater than average revenue.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.