Investment will increase if business taxes ____, real interest rates ____, or if business confidence ____
a. increase, increases, increases
b. decrease, decrease, decreases
c. increase, increases, decreases
d. decrease, decrease, increases
d
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Which of the following transactions would be included in the official calculation of GDP?
A) You wash and wax your father's car as a favor to him. B) You illegally download music off the Internet to put on your new iPod. C) You buy a new iPod. D) A student buys a used textbook at the bookstore. E) Firestone sells $2 million worth of tires to General Motors.
Suppose the real wage remains unchanged between Year 1 and Year 2 but the nominal wage increases from $20 to $24 . Based on this information, we can conclude that the price level has: a. increased by 20 percent. b. increased by 25 percent. c. remained unchanged
d. decreased by 10 percent. e. decreased by 20 percent.