Firms consider the __________ wage when considering whether to hire additional units of labor.
a. nominal
b. real
c. minimum
d. normal
A comparison of the average growth rates across time for developed nations indicates that:
a. nations with lower levels of income grow more slowly than those with higher levels of income
b. nations with lower levels of income will never be as rich as nations with high levels of income
c. nations with higher levels of income experience a continuously increasing growth rate
d. nations with lower levels of income grow more quickly than those with higher levels of income
What would be a way for the Federal Reserve to slow down the economy when it is growing too quickly or is inflationary?
a. Print more money
b. Buy back government bonds on the open market
c. Sell more government bonds
d. Encourage the stock market