In the long run, an economy will produce its potential output if:
a. workers mistakenly believe that nominal wages equal real wages
b. the expectations of workers and firms are the same in the long and short run.
c. wages and prices are sufficiently flexible.
d. the price level is high.
e. the price level is low.
c
Economics
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The main problem with using desalination to increase water supplies is that
a. There are few available sources b. It is very expensive c. Supplies are usually contaminated with pesticides d. Water tends to evaporate before it can be used e. Communities tend to be located too far from water supplies
Economics
The interest rate on Treasury Inflation Indexed Securities can be roughly interpreted as
A) the real interest rate. B) the nominal interest rate. C) the rate of inflation. D) the rate of deflation.
Economics