Suppose the real wage of a worker remains unchanged between Year 1 and Year 2 but the nominal wage decreases from $20 in Year 1 to $18 in Year 2. This implies that the price level has _____

Fill in the blank(s) with the appropriate word(s).


fallen by 10 percent.

Economics

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The income-consumption curve for Dana between Qa and Qb is given as: Qa = Qb. His budget constraint is given as: 120 = Qa + 4Qb How much Qa will Dana consume to maximize utility?

A) 0 B) 24 C) 30 D) 60 E) More information is needed to answer this question.

Economics

The stagflation experienced in the U.S. during the late 1960s and the 1970s showed us that

A. the relationship between unemployment and inflation was not as clear-cut as presented on the Phillips curve. B. it is possible to alleviate economic stagflation through the government discretionary fiscal policy. C. the Phillips curve accurately represents the trade-off between unemployment and inflation. D. both inflation and economic expansion could exist simultaneously.

Economics

Owners may have little to do with the management of the firm in the case of

A. corporations. B. either corporations or proprietorships. C. partnerships. D. proprietorships.

Economics

If a firm produces an experience good, its mode of advertising will be

A. direct advertising. B. not to advertise. C. persuasive advertising. D. none of these.

Economics