Homework Clinic
Social Science Clinic => Economics => Topic started by: soccerdreamer_17 on Jun 29, 2018
-
When the value of a currency is determined mostly by demand and supply, but with occasional government intervention, the exchange rate system is defined as
A) floating. B) fixed. C) Bretton Woods. D) managed float.
Question 2
Gretchen expects the price level to rise from 104 this year to 108 next year, and she is able to incorporate these expectations into her wage contract. If the price level rises to 106 next year instead of 108, which of the following will occur?
A) Gretchen's real wage may rise or fall, depending on the unemployment rate.
B) Gretchen's real wage will rise.
C) Gretchen's real wage will fall.
D) Gretchen's real wage will be unchanged.
-
Answer to Question 1
D
Answer to Question 2
B