If workers received a 5 percent wage increase and the rate of inflation was 3 percent, then their real wage:
A. remained constant.
B. equaled the nominal wage.
C. decreased.
D. increased.
Answer: D
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The marginal cost curve is
A) downward sloping to reflect the bowed out PPF. B) downward sloping as marginal benefits increase. C) upward sloping because marginal cost falls as more of a good or service is produced. D) upward sloping to reflect the increasing opportunity cost of producing one more unit. E) U-shaped to reflect the bowed out PPF.
Under a fixed exchange rate regime, a central bank that does not want to acquire international reserves to keep its currency from ________ will decide to ________ its currency
A) depreciating; revalue B) depreciating; devalue C) appreciating; revalue D) appreciating; devalue
If you believe that a worker should be paid on the basis of what he or she produced, you believe in
A) the egalitarian principle. B) the productivity standard. C) the benefits standard. D) the comparative worth principle.
Although the possibility exists for an economy to experience stagflation, it has never actually happened in the United States
Indicate whether the statement is true or false