If actual inflation is greater than expected inflation, what is the relationship between the actual real wage and the expected real wage?
A) The actual real wage will be equal to the expected real wage.
B) The actual real wage will be lower than the expected real wage.
C) The actual real wage will be higher than the expected real wage.
D) The relationship between the actual real wage and the expected real wage cannot be predicted.
B
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Which of the following is not a benefit resulting from international policy coordination?
A) International policy externalities can be internalized. B) It makes the most out of the limited tools central banks have to manage the economy. C) Governments working together are often better positioned to withstand domestic objections to policies if they stand together. D) All of the above are benefits.
Which statement is true?
A. All monopolies are good. B. All monopolies are bad. C. Most natural monopolies are government regulated or government owned. D. None of these statements are true.
If the banking system has $5 million in excess reserves and the required reserve ratio is 25 percent, what is the maximum amount by which the money supply can be increased?
A. $25 million B. $20 million C. $5 million D. $2.5 million
If workers in nuclear power plants underestimate the true risk of their jobs
A) employers will pay compensating differential to compensate employees fully for the risk they have assumed. B) safety legislation will not make workers better off. C) the supply of workers in this occupation will exceed demand. D) the wages of these workers will not be high enough to compensate them fully for the risk they have assumed.