Author Question: Burger King is paying 9 an hour to its workers. If the expected inflation rate equals the actual ... (Read 18 times)

jerry coleman · **on:** Jun 29, 2018

Burger King is paying 9 an hour to its workers. If the expected inflation rate equals the actual inflation rate and both are 10 percent a year, then to keep the real wage rate constant in a year the money wage rate must

A) fall to 8.10 an hour.
B) rise to 9.45 an hour.
C) rise to 10.00 an hour.
D) rise to 9.90 an hour.
E) stay at 9.00 an hour.

Question 2

The Ricardo-Barro effect refers to how ________ in response to a government budget ________.

A) investment demand changes; deficit
B) investment demand and saving supply change; surplus
C) investment demand changes; surplus
D) saving supply changes; deficit
E) government budget changes; surplus or deficit