If the inflation rate is 3% and the real interest rate is 4%, then the nominal interest rate is around

If both the goods and the labor market are perfectly competitive, a firm that hires labor up to a point where the value of marginal product of labor equals the wage rate also produces at a point where price is:

A) equal to average cost. B) equal to marginal cost. C) less than marginal cost. D) higher than marginal cost.

The local car dealership has an increase in inventory of 100 newly produced cars in 2015 . In 2016, it sells all 100 cars. Which of the following statements is correct?

a. The value of the cars in inventory will be counted as part of 2015 GDP, and the value of the cars sold in 2016 will not increase 2016 GDP. b. The value of the cars in inventory will not affect 2015 GDP, and the value of the cars sold in 2016 will increase 2016 GDP. c. The value of the cars in inventory will be counted as part of 2015 GDP, and the value of the cars sold in 2016 will increase 2016 GDP. d. The value of the cars in inventory will not affect 2015 GDP, and the value of the cars sold in 2016 will not increase 2016 GDP.