Suppose workers agreed to an indexed contract that increased their nominal wage by 4 percent plus 25 percent of any increase in the Consumer Price Index (CPI). If the CPI increased by 8 percent, what would be the change in the real wage?
a. 4 percent
b. -2 percent
c. 0 percent
d. -4 percent
e. 2 percent
B
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Moving along the short-run Phillips curve, if ________ increases, then ________ decreases
A) unemployment; the price level B) inflation; real GDP C) inflation; unemployment D) unemployment; the expected inflation rate E) inflation; the price level
A demand schedule refers to the combinations of price and quantity that represent the:
A. Concerns of regulators. B. Preferences of businesses. C. Desires of consumers. D. Demands of producers.
The balance of payments includes
a. only exports, imports, and service transactions. b. the balance on current account, plus all capital transactions and all official transactions and the statistical discrepancy. c. only the official transactions. d. all goods and services produced in a nation’s economy during a given year.
An unemployment rate of 10% means that the employment rate is 90%.
Answer the following statement true (T) or false (F)