Suppose that a labor union leader is trying to bargain for an increase in union workers' real wages of 5 percent. If he expected the price level to rise at a rate of 3 percent this year, how much would nominal wages need to increase for him to accomplish his objective?
a. 2 percent
b. 3 percent
c. 5 percent
d. 8 percent
e. 15 percent
D
You might also like to view...
A recession is a period of time in which real GDP falls.
Answer the following statement true (T) or false (F)
Which of the following statements are true concerning the labor force participation rate?
i. The labor force participation rate for women in the United States has increased since 1959. ii. The labor force participation rates for women across different countries have converged to about 50 percent. iii. The labor force participation rate for men in the United States has decreased since 1959. A) i and ii B) i, ii and iii C) i and iii D) iii only E) i only
Many people tend to buy multiple cars from the same manufacturer because
A) doing so reduces the asymmetric information problem; consumers have better knowledge of quality. B) doing so reduces the asymmetric information problem; consumers have better knowledge of prices. C) doing so doesn't change the asymmetric information problem but consumers have more information. D) doing so increases the consumers brand loyalty.
Suppose, as a result of a long-run adjustment in a perfectly competitive industry to a change in demand, price and output both rose. Therefore, demand must have __________ in this __________ industry
a. fallen; increasing cost b. fallen; decreasing cost c. increased; increasing cost d. increased; decreasing cost e. decreased; constant cost