Is it possible for nominal wages to decrease while real wages increase?
What will be an ideal response?
Yes, though unlikely. This would imply that prices have fallen, and that the decrease is sufficiently negative to offset any losses in nominal wages.
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The tradeoff for monetary policy represented by the Phillips curve is
a. lower inflation for lower output. b. lower inflation for higher unemployment. c. lower inflation for higher employment. d. higher expected inflation for higher output. e. none of the above.
No clearly defined socially preferred outcome may result when majority voting on outcomes because
A) often voters don't understand the outcomes. B) voting may violate the independence of irrelevant alternatives. C) voting may lead to incomplete preferences. D) voting may lead to non-transitive preference.
If a union wishes to maximize the number of union members employed, it will
A. set a wage where the elasticity of demand for labor equals one. B. accept the competitive wage. C. set a wage above the competitive wage. D. set a wage below the competitive wage.
A group price discriminator sells its product in Florida for three times the price it sets in New York
Assuming the firm faces the same constant marginal cost in each market and the price elasticity of demand in New York is -2.0, the demand in Florida A) has an elasticity of -6.0. B) is more price elastic than the demand in New York. C) has an elasticity of -1.2. D) has an elasticity of -0.67.