The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon. Between Year 1 and Year 2, nominal GDP grew by

Studies by economists have tended to show that countries with more independent central banks have

A) lower unemployment. B) more inflation. C) higher unemployment. D) less inflation.

The income effect of an increase in the wage rate on the quantity of leisure demanded

A. makes leisure less expensive which causes people to work less. B. gives people more purchasing power and causes people to work less. C. gives people less purchasing power and so they will work more. D. makes leisure more expensive which leads people to work more.