If your nominal wage rises faster than the price level, we can say your real wage has ________ and the purchasing power of your income has ________
A) risen; risen B) fallen; risen C) risen; fallen D) fallen; fallen
A
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According to the theory of adaptive expectations, if the inflation rate has been 4.2 percent for the last ten years, people will expect next year's inflation rate to be:
a. 4.2 percent. b. higher than 4.2 percent. c. lower than 4.2 percent. d. 0; that is, they will expect no inflation. e. 8.4 percent.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. $12 gets transferred from consumer to producer in surplus. B. all producer surplus lost is gained by consumers. C. all consumer surplus lost is gained by producers. D. $12 gets transferred from producer to consumer in surplus.
If the marginal product of capital doesn't change as the amount of capital increases, a figure showing the relationship between output and capital
A) is a straight line with constant upward slope. B) is a straight line with a slope of zero. C) is a vertical line. D) slopes upward with a slope that declines as the amount of capital increases.
The argument that government action is justified based on the fact that people would agree to be coerced to do the action if everyone else is forced to do the action is essentially an argument based _____
a. upon the transitional gains trap b. on the free rider problem c. on the ideal of the public interest d. prisoners dilemma