If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely

If the nominal interest rate is 8 percent and the current inflation rate is 3 percent, approximately what is the real interest rate?

A) 11 percent B) 8 percent C) 5 percent D) 3 percent

Of the four models of the business cycle, which model's implication concerning the change in real wages during recessions is consistent with actual observed changes in real wages during recessions?

A) the Real Business Cycle theory B) the Friedman-Phelps-Lucas Model C) the Keynesian Model D) None of the above.