A nominal wage is:
a. always equal to the legal minimum wage
b. the same as the efficiency wage.
c. measured in terms of the amount of goods and services it can purchase.
d. measured in current dollars rather than in constant dollars.
e. measured in constant dollars rather than in current dollars.
d
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The unemployment rate is calculated by dividing the number of unemployed and looking for work by the sum of the number employed and the number unemployed and looking for work
Indicate whether the statement is true or false
Which of the following best describes the "interest rate effect"?
A) An increase in the price level lowers the interest rate and chokes off investment and consumption spending. B) An increase in the price level lowers the interest rate and chokes off government spending. C) An increase in the price level raises the interest rate and chokes off government spending. D) An increase in the price level raises the interest rate and chokes off investment and consumption spending.