If the inflation rate is 2 percent and nominal wages increase by 1 percent, what happens to real wages?
a. They rise by 1 percent.
b. They fall by 1 percent.
c. They remain constant.
d. They fall by 2 percent.
e. They rise by 3 percent.
B
Economics
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If a price floor on coffee is set above the market-clearing price, then
A) the quantity of coffee demanded will decrease. B) the quantity of coffee supplied will increase. C) the quantity demanded for coffee will increase. D) Both A and B will occur E) none of the above will occur.
Economics
When a clerk gives you a pair of jeans for your $50 bill, money is serving which function?
A. Medium of exchange B. Unit of account C. Store of wealth D. Store of real assets
Economics