« previous next »

Author Question: Suppose you hold 50 to buy groceries weekly and then the price of groceries increases by 5 percent. ... (Read 105 times)

mmm

  • Hero Member
  • *****
  • Posts: 558
on: Jun 29, 2018
Suppose you hold 50 to buy groceries weekly and then the price of groceries increases by 5 percent. To be able to buy the same amount of groceries, what must happen to your nominal money holdings?
 
  A) They must increase by 5.
  B) They can decrease by 5.
  C) They must increase by 2.50.
  D) They must increase, but the amount of the increase depends on income.

Question 2

In the above figure, point A represents
 
  A) a recessionary gap.
  B) a full-employment equilibrium.
  C) an inflationary gap.
  D) an increase in aggregate demand.


dudman123

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Arctic and alpine cushion plant form and orientation increases heat gain from sunlight and the surro Arctic and alpine cushion plant form and orientation increases heat gain from sunlight and the surro
Independent assortment produces 50 percent recombinants Independent assortment produces 50 percent recombinants
How would you rate your overall health?” The percent of adults answering “excellent” or ... How would you rate your overall health?” The percent of adults answering “excellent” or ...
Let f be a real function with domain R. Suppose that for each ǫ > 0, there is a continuous ... Let f be a real function with domain R. Suppose that for each ǫ > 0, there is a continuous ...
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ... Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
Twenty percent of the automobiles inspected at a state inspection station required repairs to ... Twenty percent of the automobiles inspected at a state inspection station required repairs to ...
Video: Role of the respiratory system - effect of altered ventilation rates

For a complete list of videos, visit our video library