Suppose workers agreed to a contract that guaranteed a real wage increase of 3 percent per year. If the inflation rate was 7 percent over the following year, what is the required increase in the nominal wage to meet the contract requirements?
a. 10 percent
b. 3 percent
c. 4 percent
d. 7 percent
e. 1 percent
A
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Initially a bank has a required reserve ratio of 15 percent and no excess reserves. If $10,000 is deposited in the bank, then, ceteris paribus,
A. This bank can increase its loans by $1,500. B. This bank can increase its loans by $8,500. C. Total reserves will increase by $8,500. D. Required reserves will increase by $10,000.
Tariffs are higher in agriculture than any other sector in most countries
Indicate whether the statement is true or false
In terms of the stock market, systematic risk refers to the fact that
A) some stocks have higher returns than others. B) some stocks' returns have a higher variance than others. C) all stock prices are correlated with the health of the economy. D) most stock prices are perfectly negatively correlated.
Write down your understanding and interpretation for each of the following equations, then make sure that you familiarize yourself with these formulas: SG = (T – TR) – G
What will be an ideal response?