Real income for a given year would be less than nominal income in that year if:
a. the consumer price index was less than 100 in that year.
b. nominal income in that year was greater than nominal income in the previous year.
c. nominal income in that year was less than nominal income in the previous year.
d. the consumer price index was greater than 100 in that year.
d
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The division of variables into real and nominal is a dichotomy assumed by
a. classical economists. b. John Maynard Keynes. c. the wealth effect. d. short-run macroeconomic theory.
(Consider This) Darcy and Rachel live down the hall from each other in the same dorm. Darcy likes to play her music loudly down the hall, and Rachel finds the music annoying. A Coase theorem solution for this problem would be for:
A. Darcy and Rachel to negotiate a mutually agreeable level of volume and/or selection of music. B. the director of housing to impose a fine on Darcy whenever she plays her music too loud. C. the dorm government to set a payment schedule by which Rachel would compensate Darcy for making her play her music at a lower volume. D. the college to ban the playing of music in dorms.