The real wage
A. automatically increases with the cost of living.
B. is the nominal wage divided by the price level.
C. is the nominal wage multiplied by the price level.
D. is the price level divided by the nominal wage.
Answer: B
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Which of the following leads to a movement along the demand curve for spinach but does not shift the demand curve for spinach?
A) a rise in the price of spinach B) a newly discovered health benefit from eating spinach C) an increase in the price of broccoli, a substitute for spinach D) an increase in income for all spinach lovers
If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem
a. True b. False Indicate whether the statement is true or false
Based on these graphs, if there was no supply-side effect to a tax cut, prices would ______.
a. remain at PL1
b. move to PL2
c. move to PL3
d. remain at PL2
Refer to the above graph. At price level P2:
A. the quantity of output supplied is constant. B. the quantity of output supplied is less than the quantity of output demanded. C. the quantity of output supplied is greater than the quantity of output demanded. D. the quantity of output supplied is equal to the quantity of output demanded.