According to the Keynesian fixed wage theory, real wages should be
a. positively correlated with income.
b. not correlated with income.
c. fixed.
d. negatively correlated with income.
D
You might also like to view...
Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $15, we would expect that
A) price will decrease until quantity demanded equals quantity supplied. B) supply will increase until quantity demanded equals quantity supplied. C) demand will decrease until quantity demanded equals quantity supplied. D) there will be no change in the price since the market is in equilibrium.
Because of the large current account deficits accumulated by the United States since 1981, the United States has become a
A) nation with no official reserves. B) balanced nation. C) broke nation. D) creditor nation. E) debtor nation. The table above gives data on the U.S. balance of payments in 2019.
Ball found that an important factor affecting the sacrifice ratio is
A) the flexibility of the labor market. B) the shape of the yield curve. C) the real interest rate. D) the tightness of fiscal policy.
When the Federal Reserve raises the growth rate of the money supply to a permanently higher level, this produces ________ in real GDP and ________ in the inflation rate
A) a permanent increase, a permanent increase B) a permanent increase, a temporary increase C) no change, a temporary increase D) a temporary increase, a temporary increase E) a temporary increase, a permanent increase