Suppose there is a 5 percent increase in the nominal wages of workers in an economy. The annual rate of inflation in the economy is about 2 percent. Which of the following is true in this case?
a. Real wage would fall by about 10 percent
b. Real wage would increase by about 20 percent.
c. Real wage would fall by about 25 percent.
d. Real wage would increase by about 50 percent.
e. Real wage would increase by about 3 percent.
e
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Which of the following is a characteristic of a competitive market?
a. There are many buyers but few sellers. b. Firms sell differentiated products. c. There are many barriers to entry. d. Buyers and sellers are price takers.
Which of the following is a characteristic of an LDC?
a. All of the answers are correct. b. Lack of entrepreneurs c. Capital flight d. Vicious circle of poverty
From 2015 to 2016, the overall price level rose from 200 to 220. Over the same period, tuition rates at the local community college rose from $100 to $115 per credit hour. What can be concluded from the rise in tuition relative to overall inflation?
a. Tuition rates increased at the same rate as inflation. b. Tuition rates increased at a slower rate than inflation. c. Tuition rates increased at a faster rate than inflation. d. Tuition rates and inflation cannot be compared with the numbers given.
The firm's short-run supply curve runs up the marginal cost curve
A. to the shutdown point. B. from the shutdown point all the way up the curve. C. to the break-even point. D. from the break-even point all the way up the curve.