Comparisons of the link between the growth of the money supply and inflation indicate that
a. countries with high rates of monetary growth also experience high inflation.
b. countries with high rates of monetary growth experience low inflation.
c. monetary growth rates and inflation are unrelated.
d. inflation is primarily the result of restrictive monetary policy.
A
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Capital is a factor of production. Which of the following is an example of capital?
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To compare the purchasing power of nominal wages in two different years, one must:
A. increase both quantities by the same percentage increase in a price index. B. deflate both quantities by a common price index. C. compare the nominal values. D. adjust both quantities by the real interest rate.