If w is the growth rate of the nominal wage rate, p is the inflation rate as measured by the price deflator for total GDP, y is the growth rate for total domestic product, and n is the growth rate of labor, then the growth of real wage is ________
A) wp/n
B) y - p
C) w - p
D) wn/p
C
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According to Keynes, planned consumption
A) decreases as disposable income increases. B) is positively related to real disposable income. C) is unstable and fluctuates widely with changes in disposable income. D) is indirectly related to the interest rate.
The demand for money curve is shown in the figure above. A movement from point B to point C could be the result of
A) a rise in the real interest rate. B) an increase in the quantity of money held by banks. C) a fall in the nominal interest rate. D) a rise in the real interest rate matched by an equal fall in the nominal interest rate. E) a decrease in the total benefit from holding money.
The income elasticity of demand measures
A) the income effect of a change in price. B) the responsiveness of quantity demanded to changes in income. C) how a consumer's purchasing power is affected by a change in the price of a product. D) the percentage change in the price of a product divided by the percentage change in consumer income.
The labor force participation rate:
A. tells us what fraction of the working-age population wants to be working, whether or not they actually have a job. B. typically rises during times of recession, as more people need work. C. is used as an indication of the health of the overall economy. D. All of these are true.