If workers received a 5 percent wage increase and the rate of inflation was 10 percent, then their real wage:

A. decreased.
B. remained constant.
C. increased.
D. equaled the nominal wage.


Answer: A

Economics

You might also like to view...

By 2015, how many European countries were members of the European Union?

A) 12 B) 17 C) 28 D) 57

Economics

There are two closely related crops, X and Y, with the following demand functions QX = 180 - 2PX + PY and QY = 150 + PX - PY where QX is the quantity of X, PX is the price of X, QY is the quantity of Y, and PY is the price of Y

These two crops are grown in two widely separated countries so there is no interrelationship between the supply curves. The short-run perfectly inelastic supply for X is 150 while the short-run perfectly inelastic supply for Y is 100. In equilibrium, the prices are A) PX = 80, PY = 130 B) PX = 40, PY = 65 C) PX = 60, PY = 120 D) PX = 30, PY = 80

Economics

The above figure shows supply and demand curves for milk. If the government passes a $2 per gallon specific tax, the loss in producer surplus will equal

A) b + c + f + g. B) f + g. C) b + f. D) c + g.

Economics

Frictional unemployment is inevitable because the economy is always changing

a. True b. False Indicate whether the statement is true or false

Economics