Which of the following is consistent with the sticky-wage explanation of the upward-sloping SRAS curve?
A) The price level rises, the real wage falls, and the quantity demanded of labor declines.
B) The price level falls, the real wage rises, and the quantity demanded of labor falls.
C) The price level rises, the real wage rises, and the quantity demanded of labor falls.
D) The nominal wage rises, the real wage rises, and the quantity demanded and supplied of labor rise.
E) a and b
B
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Suppose you want to buy a popular brand of digital camera. Every store in town is out of stock. You are willing and able to pay the current market price of $300 for a camera, but you cannot find any available
Is the market for the digital camera in equilibrium? If not, is the market equilibrium price of the camera above or below $300? Use supply and demand analysis to explain your answer.
A system of accounts that measures the transactions of goods, services, income, and financial assets between domestic households, businesses, and governments and residents of the rest of the world during a specific time period is the
A) capital account. B) current account. C) balance of payments. D) balance of trade.
Answer the following statements true (T) or false (F)
1. Monopsony is a market condition in which there is only one seller. 2. A bilateral monopoly is a circumstance where only one seller and only one buyer exist in a market. 3. The market structures of perfect competition and monopoly are polar extremes. 4. A bilateral monopoly has a single buyer on one side of the market and a single seller on the other side. 5. In second degree price discrimination, each customer is charged a different price.
Under monopolistic competition, a firm's ability to influence the price of the product it sells arises because:
A. each seller sells a standardized product. B. the product of each seller is differentiated from that of others. C. sellers in the market have large market shares. D. sellers in the market have small market shares.