Gretchen expects the price level to rise from 104 this year to 108 next year, and she is able to incorporate these expectations into her wage contract. If the price level rises to 106 next year instead of 108, which of the following will occur?

A) Gretchen's real wage may rise or fall, depending on the unemployment rate.
B) Gretchen's real wage will rise.
C) Gretchen's real wage will fall.
D) Gretchen's real wage will be unchanged.


B

Economics

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Which of the following best represents the money supply?

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A market in which national currencies are traded by households, firms and governments, is referred to as a(n)

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Suppose two coffee snobs who must have their coffee and cream in exact proportions (each cup is 10 coffee per 1 unit cream) are invited to a weekend long event (during which they can easily consume 8 cups of coffee). Suppose Snob A is given 8 units of cream and Snob B is given 80 units of coffee. The post trading result (one in which any trade that makes both parties better off than their initial

allocation) will guarantee each person a. nothing b. at least 1 cup of properly made coffee. c. at least 2 cups of properly made coffee. d. exactly 4 cups of properly made coffee.

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