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 102 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
Gracias!

dyrone

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

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?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Results from sequential study of two cohorts tested at three ages and at three different points in t Results from sequential study of two cohorts tested at three ages and at three different points in t
Time Estimates for Specific Office Procedures Cont. Time Estimates for Specific Office Procedures Cont.
Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure
The population of Asia increases rapidly, the demand for food and water is also growing The population of Asia increases rapidly, the demand for food and water is also growing
Over time, cells acquire mutations. Two independently acquired mutations in the same cell may be suf Over time, cells acquire mutations. Two independently acquired mutations in the same cell may be suf
Time value money Time value money
Video: Metabolic Rate, Heat and Thermoregulation - response to heat and cold stresses

For a complete list of videos, visit our video library