When wages are set by contract, inflation
a. reduces real wages; this likely makes labor markets more flexible.
b. reduces real wages; this likely makes labor markets less flexible.
c. raises real wages; this likely makes labor markets more flexible.
d. raises real wages; this likely makes labor markets less flexible.
a
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In some remote communities, there was only one employer in the local labor market several years ago, but the number of firms that hired workers in the market increased over time
What is the expected change in the local labor market as the number of employers increased (ceteris paribus)? A) Wages and employment increase B) Wages remain the same but employment increases C) Wages increase but employment remains the same D) Wages and employment decline
Betty is out on a first date with Barney. She decides to order the garden salad with dressing on the side in an effort to make a good first impression, even though she prefers leg of lamb. Economic theory:
A. cannot explain why someone would choose a meal that brings her less utility than another. B. would suggest that making a good impression with her choice will bring her more utility than ordering lamb and making a bad impression. C. would suggest that she values what Barney thinks of her and will derive negative utility if she does not impress him. D. cannot be used to explain matters of the heart.
Other things the same, an increase in taxes with no change in government purchases makes national saving
a. rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply of loanable funds shifts left. d. fall. The demand for loanable funds shifts left.
Which of the following actions does not promote capital deepening?
(A) Raising taxes to pay for building roads. (B) A low population growth rate at the same time that capital stock expands. (C) Borrowing money from foreign nations to invest in building infrastructure in this country. (D) Saving less and spending more of one's disposable income.