Author Question: Your grandfather tells you that he earned 7,000/year in his first job in 1961. You earn 35,000/year ... (Read 61 times)

Metfan725 · **on:** Jun 29, 2018

Your grandfather tells you that he earned 7,000/year in his first job in 1961. You earn 35,000/year in your first job in 2016. You know that average prices have risen steadily since 1961. You earn

A) less than 5 times as much as your grandfather in terms of nominal income.
B) 5 times as much as your grandfather in terms of real income.
C) less than 5 times as much as your grandfather in terms of real income.
D) more than 5 times as much as your grandfather in terms of real income.

Question 2

Refer to Figure 24-2. Ceteris paribus, an increase in the expected price of an important natural resource would be represented by a movement from

A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.