This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the money wage rate is constant and the price level increases, what happens to the real wage ... (Read 169 times)

sdfghj

  • Hero Member
  • *****
  • Posts: 552
on: Jun 29, 2018
If the money wage rate is constant and the price level increases, what happens to the real wage rate, firms' profits, and the aggregate quantity supplied?
 
  What will be an ideal response?

Question 2

Price ceilings in the U.S. on retail gasoline sales in the 1970s caused
 
  A) massive and prolonged shortages.
  B) increased advertising of gasoline.
  C) longer hours of operation at most service stations.
  D) poor people to be assured of an adequate supply of gasoline.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Heffejeff

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 29, 2018
Answer to Question 1

The real wage rate falls. Because the price level has increased and money wage rates are constant while real wage rates are lower, firms' profits increase. As a result, the aggregate quantity of goods and services supplied increases.

Answer to Question 2

A


sdfghj

  • Member
  • Posts: 552
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

scottmt

  • Member
  • Posts: 322
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Three routes of tissue-level transport in plants: transmembrane, symplastic, and apoplastic. Three routes of tissue-level transport in plants: transmembrane, symplastic, and apoplastic.
The Speed of Light Is Constant The Speed of Light Is Constant
U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994 U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994
The number of phenotypic classes in the F2 generation increases as the number of genes controlling t The number of phenotypic classes in the F2 generation increases as the number of genes controlling t
The age-adjusted rate of melanoma, a deadly form of skin cancer, from 1973 to 2000. Over that time p The age-adjusted rate of melanoma, a deadly form of skin cancer, from 1973 to 2000. Over that time p
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
Video: Neural regulation of blood pressure - baroreceptor and chemoreceptor reflexes

For a complete list of videos, visit our video library