The nominal annual wage increases from $20,000 to $21,000 while the price level increases by 7 percent. In this case, the percentage change in the real annual wage is about:
A. -1 percent
B. -2 percent
C. 3 percent
D. 5 percent
B. -2 percent
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In the neoclassical growth model, if two countries are exactly the same but one has a lower permanent budget deficit, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and higher output growth in the steady state. b. the same output and capital-to-labor ratio, but higher output growth in the steady state. c. higher output, the same capital-to-labor ratio, and the same output growth in the steady state. d. higher output, a higher capital-to-labor ratio, and the same output growth in the steady state.
A tariff will decrease the supply of the product
a. True b. False Indicate whether the statement is true or false
If the demand for bus transportation in a city is inelastic, then the city should lower the price to increase revenue
Indicate whether the statement is true or false
In a barter economy, Say's law implies there
A) can be a general overproduction of goods. B) can be a general underproduction of goods. C) cannot be a general overproduction or underproduction of goods. D) can be a general overproduction of goods but never a general underproduction of goods.