In 2011 the top 5 percent of income earners accounted for over 50% of all income received by United States' families

If the public believes that the commitment to a nominal anchor is not credible, the effect of a positive aggregate demand shock is for ________

A) short-run aggregate supply to shift down B) short-run aggregate supply to remain unchanged C) short-run aggregate supply to shift up D) inflation, but not economic activity, to increase

Refer to the information above. Which of the following represents the level of investment needed to maintain a constant capital stock (K) in this economy?

A) .02K B) .03K C) .05K D) .10K E) .15K