This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: When the nominal price of a good increases over time, must its real price also increase? What ... (Read 35 times)

waynest

  • Hero Member
  • *****
  • Posts: 553
on: Jun 29, 2018
When the nominal price of a good increases over time, must its real price also increase?
 
  What will be an ideal response?

Question 2

In its macroeconomic equilibrium, the economy can be producing at
 
  i. below full employment.
  ii. full employment.
  iii. above full employment.
  A) i only B) ii only C) iii only D) i or ii E) i, ii, or iii


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tdewitt

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

No, even though the nominal price of a good increases, its real price might decrease. For instance, the nominal price of motorcycles has increased between 1970 and 2010, but their real price has decreased because the CPI increased even more rapidly.

Answer to Question 2

E


waynest

  • Member
  • Posts: 553
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

helenmarkerine

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Principles of time management Principles of time management
Enterohepatic recirculation of a drug can increase its half-life in the body and prolong its ... Enterohepatic recirculation of a drug can increase its half-life in the body and prolong its ...
Touch the test light to the negative (–) terminal of the battery or a good engine ground to check ... Touch the test light to the negative (–) terminal of the battery or a good engine ground to check ...
Oatmeal and other whole grain cereals are good sources of carbohydrates to start your morning off Oatmeal and other whole grain cereals are good sources of carbohydrates to start your morning off
A clock is showing the time as exactly 3:00 p.m. and 25 s. A clock is showing the time as exactly 3:00 p.m. and 25 s.
Determine the nominal annual rate of interest of the following ordinary general annuity. Determine the nominal annual rate of interest of the following ordinary general annuity.
Video: Energy inputs and release in glycolysis Animation

For a complete list of videos, visit our video library