If the nominal wage rises by 4 percent, and the price level rises by 7 percent, the real wage will:
A. be unaffected.
B. rise by 3 percent.
C. fall by 3 percent.
D. rise by 11 percent.
Answer: C
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Which of the following changes shifts the AD curve down and to the left?
A) A temporary increase in government purchases B) A rise in the nominal money supply C) A decrease in corporate taxes D) A decrease in consumer confidence
Describe the difference between intentional torts against persons and intentional torts against property. Include a minimum of three categories of both types of torts, and provide an example of each one in your own words.
By 2006, 20 percent of the mortgage market consisted of:
A. subprime loans, while 80 percent were still regular prime mortgages. B. prime loans, and an overwhelming 80 percent had become subprime mortgages. C. securitized loans, and the rest were backed by the government. D. individual mortgage loans, and an overwhelming 80 percent had become securitized loans.
Suppose the government's budget deficit increases by $500 billion. If there is no Ricardo-Barro effect, what occurs?
A) The supply of loanable funds curve shifts leftward, the real interest rate rises, and the quantity of loanable funds decreases. B) The supply of loanable funds curve shifts rightward, the real interest rate falls, and the quantity of loanable funds increases. C) The demand for loanable funds curve shifts rightward, the real interest rate rises, and the quantity of loanable funds increases. D) The demand for loanable funds curve shifts leftward, the real interest rate falls, and the quantity of loanable funds decreases. E) The supply of loanable funds curve shifts leftward, the real interest rate rises, and the quantity of loanable funds increases.