ABC news in Australia reported that the average annual wage in 2008 was $13,308. To calculate the real wage rate in Australia, you would need to know
A) Australia's inflation rate between 2007 and 2008.
B) Australia's price level in 2008.
C) the core inflation rate in Australia in 2008.
D) the exchange rate between the U.S. dollar and the Australian dollar.
B
You might also like to view...
If firms are earning economic profit in a monopolistically competitive market, which of the following is most likely to happen in the long run?
A) Some firms will leave the market. B) Firms will join together to keep others from entering. C) New firms will enter the market, thereby eliminating the economic profit. D) Firms will continue to earn economic profit.
Which of the following is true concerning the income effect of a decrease in price?
A) It will lead to an increase in consumption only for a normal good. B) It always will lead to an increase in consumption. C) It will lead to an increase in consumption only for an inferior good. D) It will lead to an increase in consumption only for a Giffen good.
Unemployment that occurs from fundamental technological changes in production, or from the substitution of new goods for customary ones, is known as
a. underemployment b. seasonal unemployment c. frictional unemployment d. structural unemployment e. cyclical unemployment
If the inflation rate during a particular year is 2 percent, then the real interest rate that a lender will receive from a loan that promises a nominal interest rate of 10 percent is _____
a. 12 percent b. 8 percent c. 10 percent d. 2 percent