Identify the correct statement.
What will be an ideal response?
In periods of high inflation, real wages change even if nominal wages remain constant.
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Suppose a country experiences an increase in output per worker. Such a development represents which of the following?
A) an increase in labor productivity B) an increase in population growth C) a reduction in the saving rate D) a decrease in economic growth
An increase in aggregate demand is shown by
A) a movement up along the aggregate demand curve. B) a leftward shift in the aggregate demand curve. C) the movement down along the aggregate demand curve. D) a rightward shift in the aggregate demand curve.
An exchange rate is
a. the rate at which goods are traded between countries b. the rate of the net difference between exports and imports c. the denomination of currency used to purchase imports d. the price of one currency in terms of another e. the price at which one good trades for another
Using Figure 2 below, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE1 might be:
A. consumption increases.
B. investment increases.
C. export increase.
D. government spending decreases.