The nominal wage represents:
a. the wage measured in terms of the quantity of goods and services a worker can purchase with it.
b. the wage measured in terms of the dollar value of the goods and services a worker can purchase with it.
c. the real wage from which personal taxes has been deducted.
d. the standard of living of workers across time.
e. the change in real wage brought about by changes in aggregate supply.
Question 2
The demand for money in an economy is high when the:
a. real GDP is low.
b. personal tax rate is low.
c. unemployment rate is high.
d. price level is high.
e. interest rate is high.
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