If workers and firms expect that inflation will be 5 percent next year, and real wages are not changing over time, by how much will nominal wages increase?
A) less than 5 percent B) more than 5 percent
C) 5 percent D) depends on actual inflation for next year
C
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The only way that consumption can be taxed is through a general sales tax
a. True b. False
The fact that consumers often react more to changes in the posted price of a good as compared to changes in the sales tax that is not posted is an example of
A) salience. B) salinity. C) stupidity. D) rational ignorance.
Higher interest rates:
a) increase consumption and investment spending. b) decrease consumption and increase investment spending. c) decrease consumption and investment spending. d) increase consumption and decrease investment spending.
Whose An Essay on the Principle of Population argued that human living standards could only temporarily rise above subsistence?
A. Adam Smith. B. Thomas Malthus. C. John Maynard Keynes. D. Alfred Marshall.