Suppose workers receive a 5 percent increase in wages and prices are rising by 5 percent. Workers will experience
A) an increase in nominal wages and a decrease in real wages.
B) an increase in nominal wages and an increase in real wages.
C) an increase in nominal wages but real wages are unchanged.
D) a decrease in nominal wages and a decrease in real wages.
Answer: C) an increase in nominal wages but real wages are unchanged.
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Ralph is a plumber. Which of the following are included in his human capital?
a. the knowledge he learned on the job, and the tools he uses b. the knowledge he learned on the job, but not the tools he uses c. the tools he uses, but not the knowledge he learned on the job d. neither the knowledge he learned on the job nor the tools he uses
If an economy's exports are $560 billion and its net exports are -$130 billion, its imports are
A) $690 billion. B) $430 billion. C) -$430 billion. D) -$690 billion.
According to the textbook, NAFTA was expected to help which country exploit its comparative advantage in the production of goods made by unskilled labor?
A. Cuba B. Mexico C. Canada D. The USA
The price elasticity of demand for DVDs is 2. If the price of a DVD increased by 2 percent, the quantity demanded will ________
A) decrease by 2 percent B) not change C) decrease by 4 percent D) decrease by 1 percent