The nominal wage is $40 an hour and the price level as measured by a price index is 2.00. If the nominal wage falls to $30 and the price index declines to 1.50, according to the worker misperception explanation of the upward-sloping SRAS curve, workers will initially perceive the
A) real wage as something greater than $20.
B) real wage as something less than $20.
C) real wage as $20.
D) nominal wage as something more than $30.
E) nominal wage as something less than $30.
B
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A line is tangent to a curve if it
a. crosses the curve at one point b. touches the curve at one point, without crossing it c. crosses the curve at a minimum of two points d. never touches the curve e. forms a right triangle with the curve
The elasticity of supply is defined as the ________ change in quantity supplied divided by the _______ change in price.
a. total; percentage b. percentage; marginal c. marginal; percentage d. percentage; percentage
Nobody benefits from inflation
Indicate whether the statement is true or false
Under which market model are the conditions of entry into the market easiest?
A. Pure monopoly B. Monopolistic competition C. Pure competition D. Oligopoly