Self-correcting mechanism reveals that
A. real wages will increase if there is an increase in price.
B. nominal wages will fall if there is inflationary gap.
C. nominal wages will increase if there is recessionary gap.
D. in the long run economy will be in equilibrium at potential GDP.
Answer: D
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Which of the following is true of marginal cost?
a. Marginal cost is the cost per unit of output produced. b. Marginal cost is the change in total cost divided by the change in total output. c. Marginal cost curve is negatively sloped at the profit-maximizing level of output. d. Marginal cost is equal to total cost divided by the quantity of output. e. Marginal cost initially increases with an increase in output but subsequently declines.
For the economy as a whole, spending on advertising comprises about what percent of total firm revenue?
a. 0.5 b. 2 c. 10 d. 20
Refer to Table 4-6. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. The equilibrium price and quantity for Aunt Maud's lotion are $20 and 30 thousand units
What is the value of economic surplus in this market? A) $600 thousand B) $1,050 thousand C) $1,500 thousand D) $2,100 thousand
Provide a concise statement on the relationship between the debt crisis and:
(a) foreign direct investment, (b) trade liberalization, (c) absolute poverty, and (d) investment levels.