Suppose Paris thinks a 5 percent increase in her hourly wage as an incentive to work more hours while the price level also increases by 5 percent. Paris is said to be suffering from
A) money illusion.
B) rationality.
C) irrationality.
D) the effects of competition.
A
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What will be an ideal response?
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Answer the following statement true (T) or false (F)
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a. increases in the labor force b. increases in the capital stock c. advances in technological knowledge d. All of the above are correct.
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What will be an ideal response?