In the cost-push model of inflation, increases in nominal-wage rates that exceed increases in the productivity of labor:
A. Increase aggregate supply and the price level in the economy
B. Increase aggregate supply and decrease the price level in the economy
C. Decrease aggregate supply and the price level in the economy
D. Decrease aggregate supply and increase the price level in the economy
D. Decrease aggregate supply and increase the price level in the economy
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The real exchange rate is the
A) relative price of U.S. produced output relative to foreign-produced output. B) price of foreign goods relative to the price of domestic goods. C) trade-weighted index. D) current account balance.
If the P/E ratio is equal to 50, it implies that investors in the stock are willing to pay:
a. $25 for every $2 of the earnings that the company generates during a period. b. $100 for every $1 of the earnings that the company generates during a period. c. $500 for every $1 of the earnings that the company generates during a period. d. $50 for every $1 of the earnings that the company generates during a period. e. $5 for every $1 of the earnings that the company generates during a period.