Starting from short-run equilibrium, wage rates rise. What is the effect on the price level and Real GDP in the short run?
A) The price level rises and Real GDP falls.
B) The price level falls and Real GDP rises.
C) The price level rises and Real GDP rises.
D) The price level falls Real GDP falls.
A
Economics
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If the nominal interest rate is the same as the real interest rate, then inflation must be:
A. zero. B. higher than the nominal rate of interest. C. lower than the nominal rate of interest. D. negative.
Economics
If the most someone is willing to pay for ticket to see their favorite team is $100 and the market price of the ticket is $35, then this buyer will get consumer surplus of
A. 1 ticket. B. $35. C. $65. D. $100.
Economics