If the actual price level is above the expected price level, then workers' actual real wage will be below their expected real wage.
a. true
b. false
Answer: a. true
You might also like to view...
Comment on the following statement: "The output effect and the factor substitution effectwork in opposite directions, so it is possible that a decrease in the wage rate can lead to a decrease in the amount of labor hired."
What will be an ideal response?
Whenever there is a surplus in the current account, the capital account: a. will be negative
b. will be positive. c. will be zero. d. could be negative, positive, or zero.
The equilibrium price of a burger is $10, and the equilibrium quantity is 150 burgers. If the quantity of burgers sold increases to 200, the difference is a gain in net social welfare
a. True b. False Indicate whether the statement is true or false
The law of one price states that if transportation costs are relatively small, then the:
A. nominal exchange rate for a currency must equal the real exchange rate for that currency. B. nominal exchange rates for every country's currency must be equal. C. price of an internationally traded commodity must be the same in all locations. D. producer with the lowest opportunity cost should be the only producer any commodity.