Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes
a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased.
b. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage decreased.
c. your real wage increase. If your real wage rose by a greater percentage than the price level, then your nominal wage also increased.
d. your real wage decrease. If your real wage rose by a greater percentage than the price level, then your nominal wage decreased.
A
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The slope of the AE curve is .80. What is the expenditure multiplier? Everything else the same, by how much does equilibrium aggregate expenditure increase if
a. exports increase from $1.75 trillion to $2.25 trillion? b. government expenditure on goods and services decrease from $2.0 trillion to $1.8 trillion? c. investment increases from $1.2 trillion to $2.3 trillion?
In practice, the Fed's policy of targeting money market conditions in the 1960s proved to be
A) countercyclical, helping to stabilize the economy. B) procyclical, destabilizing the economy. C) procyclical, helping to stabilize the economy. D) countercyclical, destabilizing the economy.