Workers at a local construction company are paid $32.50 per hour, and they have incorporated a 4 percent annual raise in their contracts to account for expected inflation
Explain how unexpected inflation of 2 percent will affect the real wages earned by these workers and the unemployment rate of these workers.
If actual inflation is 4%, a 4% increase in wages will allow workers to maintain their real wage. However, if inflation is lower than expected (2% instead of 4%), the 4% increase in wages will increase the real wage, and firms will hire fewer workers than they had planned. As a result, unemployment will rise.
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The demand for Healthy Bars, a health snack bar, is Qd = 10 - (2 × P) and Healthy Bars has a constant average cost of $3 per snack bar. If Healthy Bars wants to package their bars to create an all-or-nothing offer and puts the profit-maximizing number of bars into each package, what is the profit-maximizing price to charge for the package?
A) $8 B) $12 C) $20 D) $16
An increase in demand could arise from which of the following factors
a. an increase in income b. a decrease in the price of a complement c. an increase in the price of a substitute d. all of the above
Which one of the following changes is consistent with a change in an economy's consumption function from C = $500 billion + 0.80Y to C = $700 billion + 0.80Y?
a. An increase in disposable income taxes. b. An increase in interest rates c. A decrease in permanent disposable income. d. An increase in wealth. e. An increase in savings.
The ________ is the ratio of the number of people in the labor force to the total adult population
a. unemployment rate b. labor force c. labor force participation rate d. employment rate