Select the positive statement that completes the sentence: If wages rise more rapidly than productivity:
a. profits will fall. b. workers will earn 3/4 of GDP.
c. the rate of inflation increases. d. all of these.
d
You might also like to view...
How would the Fed's reduction of the reserve ratio requirement affect the money supply?
What will be an ideal response?
If the economy is in a recessionary gap, and the government attempts to balance the budget, the effect will be to
a. counteract the recession. b. worsen and prolong the recession. c. end the recession sooner. d. increase the level of real GDP.
If Spain has a trade deficit, then
a. foreign countries purchase more Spanish assets than Spain purchases from them. This makes Spanish saving greater than Spanish domestic investment. b. foreign countries purchase more Spanish assets than Spain purchases from them. This makes Spanish saving smaller then Spanish domestic investment. c. foreign countries purchase fewer Spanish assets than Spain purchases from them. This makes Spanish saving greater than Spanish domestic investment. d. foreign countries purchase fewer Spanish assets than Spain purchases from them. This makes Spanish saving greater than Spanish domestic investment.
International trade will:
A. decrease total surplus, which creates a role for government. B. increase total surplus only if the country is a net-importer of a particular good. C. create more efficiency. D. increase total surplus only if the country is a net-exporter of a particular good.