A rational decision maker takes an action if and only if the marginal benefit exceeds the marginal cost

If imports increased by $100 million while GDP remained the same, which of the following could have occurred, all else being the same?

a. Exports decreased by $100 million. b. Consumption increased by $100 million. c. Government spending decreased by $100 million. d. Net exports increased by $100 million. e. Private investment decreased by $100 million.

If your nominal wage rises more slowly than the price level, we can say your real wage has ________ and the purchasing power of a dollar has ________

A) fallen; fallen B) fallen; risen C) risen; risen D) risen; fallen