Assuming that as a result of observed past increases in the aggregate price level, workers' expectation of the current price level rises. Then,
a. less labor will be supplied at each money wage because with the higher expectation about the aggregate price level since a given money wage corresponds to a lower real wage.
b. the firm has to pay a higher money wage in order to obtain a given quantity of labor.
c. more labor will be supplied at each money wage because with the higher expectation about the aggregate price level since a given money wage corresponds to a higher real wage.
d. Both a and b
e. Both b and c
D
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A corporation is liable to pay to bondholders the
A. current interest rate in the bond market. B. current yield on the particular bond. C. coupon rate on the bond. D. yield on the bond at maturity.
The unemployment rate never falls to ________________ percent.
a. three b. five c. zero d. one
Who gains in a voluntary trade?
What will be an ideal response?
Look at this producer surplus graph. If Caroline is already producing wheat at P1, what happens when the price moves to P2?
a. Her producer surplus will decrease.
b. Her producer surplus will increase.
c. Nothing happens because she is already producing at a lower price.
d. She will have to produce more to make the same total profit.