Define real shocks, define nominal shocks, and give an example of each
What will be an ideal response?
Real shocks are changes that disturb labor market equilibrium or goods market equilibrium. Nominal shocks are changes that disturb the asset market. A change in aggregate saving is an example of a real shock. A change in the money supply is an example of a nominal shock.
Economics
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Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 belt in Morocco?
A) 1/2 of a sword B) 1 sword C) 1.5 swords D) 2 swords
Economics
The marginal utility of a unit of good X
A. is always greater than the total utility of X. B. is always less than the average utility of X. C. generally depends on how much X the consumer already has. D. is always equal to the price of X.
Economics