You Put Money in the Bank

question 92

Multiple Choice

You put money in the bank.The increase in the dollar value of your savings

• A)and the change in the number of goods you can buy with your savings are both nominal variables.
• B)and the change in the number of goods you can buy with your savings are both real variables.
• C)is a nominal variable,but the change in the number of goods you can buy with your savings is a real variable.
• D)is a real variable,but the change in the number of goods you buy with your savings is a nominal variable.

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Definitions:

Payroll Tax

Obligations imposed on both employers and employees, frequently measured as a segment of the payroll.

Equilibrium Wage Rate

The wage rate at which the quantity of labor demanded equals the quantity of labor supplied in the market.

Payroll Tax

A tax that an employer withholds and pays on behalf of its employees based on the wage or salary of the employee, typically used to fund social security and healthcare programs.

Labor Supply

The total hours that workers wish to work at a given wage rate, or the workforce available for employment.