Question :
111.Supposethepricelevelrises,butthenumberofdollarsyouarepaidperhourstaysthesame.Thismeansthatyour
a.nominalwageishigher.
b.nominalwageislower.
c.realwageishigher.
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111.Supposethepricelevelrises,butthenumberofdollarsyouarepaidperhourstaysthesame.Thismeansthatyour
a.nominalwageishigher.
b.nominalwageislower.
c.realwageishigher.
d.realwageislower.
112.Yourspousecomplainsthather6%raisethisyearwillnotkeepupwiththeincreaseinprices.Inotherwords,sheisunabletobuythesamebasketofgoodswithher6%raise.Therefore,shebelievesthather
a.nominalincomeandrealincomeincreased.
b.nominalincomeincreased,buttheirrealincomedecreased.
c.nominalincomeandrealincomedecreased.
d.nominalincomedecreased,buttheirrealincomeincreased.
113.Youfindthattoattractasufficientnumberofworkersyouhavetopaythemmoredollars.Giventhepriceofyouroutputyoudetermineyouarepayingyourworkersmoreingoodsthanbefore.Whichofthefollowinghasrisen?
a.Therealandnominalvalueofthewagesyoupay.
b.Therealbutnotthenominalvalueofwagesyoupay.
c.Thenominalbutnottherealvalueofthewagesyoupay.
d.Neithertherealnorthenominalvalueofthewagesyoupay.
114.Supposeeachgoodcosts$5perunitandMeganholds$40.Whatistherealvalueofthemoneysheholds?
a.$40.Ifthepriceofgoodsrises,tomaintaintherealvalueofhermoneyholdingssheneedstoholdmoredollars.
b.8unitsofgoods.Ifthepriceofgoodsrises,tomaintaintherealvalueofhermoneyholdingssheneedstoholdmoredollars.
c.$40.Ifthepriceofgoodsrises,tomaintaintherealvalueofhermoneyholdingssheneedstoholdfewerdollars.
d.8unitsofgoods.Ifthepriceofgoodsrises,tomaintaintherealvalueofhermoneyholdingssheneedstoholdfewerdollars.
115.Supposeeverygoodcosts$8perunitandMollyholds$120.Whatistherealvalueofthemoneysheholds?
a.$120.Ifthepriceofgoodsrises,tomaintaintherealvalueofhermoneyholdingssheneedstoholdmoredollars.
b.$120.Ifthepriceofgoodsrises,tomaintaintherealvalueofhermoneyholdingssheneedstoholdfewerdollars.
c.15unitsofgoods.Ifthepriceofgoodsrises,tomaintaintherealvalueofhermoneyholdingssheneedstoholdmoredollars.
d.15unitsofgoods.Ifthepriceofgoodsrises,tomaintaintherealvalueofhermoneyholdingssheneedstoholdfewerdollars.
116.Supposeicecreamconescosts$3.Mollyholds$60.Whatistherealvalueofthemoneysheholds?
a.$60.Ifthepriceoficecreamconesrises,tomaintaintherealvalueofhermoneyholdingssheneedtoholdmoredollars.
b.$60.Ifthepriceoficecreamconesrises,tomaintaintherealvalueofhermoneyholdingssheneedtoholdfewerdollars.
c.20icecreamcones.Ifthepriceoficecreamconesrises,tomaintaintherealvalueofhermoneyholdingssheneedstoholdmoredollars.
d.20icecreamcones.Ifthepriceoficecreamconesrises,tomaintaintherealvalueofhermoneyholdingssheneedstoholdfewerdollars.
117.Onitswebsite,yourbankpoststheinterestratesitispayingonsavingsaccounts.Thosepostedrates
a.andapriceindexarebothrealvariables.
b.andapriceindexarebothnominalvariables.
c.arerealvariables,andapriceindexisanominalvariable.
d.arenominalvariables,andapriceindexisarealvariable
118.Interestratesadjustedfortheeffectsofinflation
a.andinflationarenominalvariables.
b.andinflationarerealvariables.
c.arerealvariables;inflationisanominalvariable.
d.arenominalvariables;inflationisarealvariable.
119.Youputmoneyinthebank.Theincreaseinthedollarvalueofyoursavings
a.andthechangeinthenumberofgoodsyoucanbuywithyoursavingsarebothnominalvariables.
b.andthechangeinthenumberofgoodsyoucanbuywithyoursavingsarebothrealvariables.
c.isanominalvariable,butthechangeinthenumberofgoodsyoucanbuywithyoursavingsisarealvariable.
d.isarealvariable,butthechangeinthenumberofgoodsyoubuywithyoursavingsisanominalvariable.
120.Kellyputsmoneyinasavingsaccount.Oneyearlatershehastwopercentmoredollarsandcanbuythreepercentmoregoods.Kellyearnedarealinterestrateof
a.twopercentandpricesfellonepercent.
b.twopercentandpricesroseonepercent.
c.threepercentandpricesroseonepercent.
d.threepercentandpricesfellonepercent.