For this question, assume that expectations of P and A are correct. Based on price setting behavior, the real wage will be equal to which of the following?
A) A/(1 + m)
B) AP/(1 + m)
C) APF(u,z)
D) P(1 + m)
E) none of the above
A
You might also like to view...
A monopolistically competitive industry is characterized by
a. many firms selling products that are similar but not identical. b. many firms selling identical products. c. a few firms selling products that are similar but not identical. d. a few firms selling highly different products.
How much pollution should we emit?
A. To a level where MB is greater than or equal to the MC B. To a level where MC is greater than the MB C. Zero D. A fair amount of pollution
Suppose Sam buys a good for $100 at a yard sale. If consumer surplus from the sale is $75, Sam would have been willing to pay:
A. $100. B. $175. C. $25. D. equal to the deadweight loss.
Which of the following is most representative of the functional finance view of the macroeconomy?
A. Budgets should be balanced. Doing otherwise is morally wrong. B. The government should decide on tax and spending plans based on their effects on the economy. C. The economy is self-regulating and the best thing the government can do to enhance stability is to stay out of the way. D. Crowding out almost completely cancels out any deficit spending, so fiscal policy is likely to be ineffective.