Sherice Earns Minimum Wage and Wants to Spend No More

question 18

Multiple Choice

Sherice earns minimum wage and wants to spend no more than 30 percent of her income on housing. Assuming her rent is the national average for a two-bedroom rental, she would need to:

• A) Work part time to afford housing.
• B) Work two jobs to afford housing.
• C) Work three jobs to afford housing.
• D) None of the above.

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Definitions:

Recession

A short-lived economic contraction, featuring a reduction in both trade and industrial activities, conventionally confirmed by observing a GDP decrease in two back-to-back quarters.

Money Demand Curve

A graphical representation showing the relationship between the interest rate and the total quantity of money that people hold at various levels of interest.

Nominal GDP

The market value of all final goods and services produced within a country in a specific period, measured in current prices.

Price Level

An index that measures the average of current prices of goods and services in comparison with the prices in a base year.