« previous next »

Author Question: Suppose you hold 50 to buy groceries weekly and then the price of groceries increases by 5 percent. ... (Read 124 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?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

An intra-aortic balloon pump increases circulation to the coronary arteries and decreases the worklo An intra-aortic balloon pump increases circulation to the coronary arteries and decreases the worklo
The football hold. The football hold.
Draping for massage of arm. A. Hold arm to side and tuck drape at ribs. B. Lift arm across chest and ... Draping for massage of arm. A. Hold arm to side and tuck drape at ribs. B. Lift arm across chest and ...
Stretch arm overhead. Stand to the side facing the same direction as the recipient. Hold onto the ... Stretch arm overhead. Stand to the side facing the same direction as the recipient. Hold onto the ...
How to convert percent to decimals to fractions How to convert percent to decimals to fractions
Fetus Development Weekly vs. Monthly Fetus Development Weekly vs. Monthly
Video: Energy Flow - Trophic Levels and Food

For a complete list of videos, visit our video library