If the money supply increases 10-percent, velocity decreases 5-percent, and the price level increases 6-percent, then the change in real GDP is

If the inflation rate in an economy is 5 percent and the income earned by workers increases by 5 percent, then _____

a. nominal income declines and real income increases b. both nominal income and real income increase by 5 percent c. nominal income increases and real income declines d. both nominal income and real income decrease by 5 percent e. nominal income increases by 5 percent and real income is unchanged

Which of the following is an example of consumer sovereignty?

a. People must pay a portion of their wages to social security. b. Car manufacturers change vehicle body styles in response to sales. c. Federal tax rates are based on a person’s earnings. d. Companies often donate products to help with disaster relief.