« previous next »

Author Question: Which of the following conditions will occur when two countries are engaged in a credible, fixed ... (Read 66 times)

imanialler

  • Hero Member
  • *****
  • Posts: 539
on: Jun 30, 2018
Which of the following conditions will occur when two countries are engaged in a credible, fixed exchange rate regime?
 
  A) E = 1
  B) E > 1
  C) i = i
  D) E < 1

Question 2

Explain what effect a reduction in the unemployment rate will have on the real wage based on: (1 ) the WS relation; and (2 ) the PS relation.
 
  What will be an ideal response?


juwms

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A reduction in the unemployment rate will increase bargaining power, increase the nominal wage, and therefore increase the real wage based on wage setting behavior. Changes in the unemployment rate have no effect on the real wage based on price setting behavior.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Patient conditions not appropriate for elctronic blood pressure measurement Patient conditions not appropriate for elctronic blood pressure measurement
Conditions Necessary for Hurricane Formation Conditions Necessary for Hurricane Formation
Fixed bed state (i) and complete fluidization (ii) Fixed bed state (i) and complete fluidization (ii)
Map of Arabic Speaking Countries Map of Arabic Speaking Countries
Transcription Conditions for the lac Operon Transcription Conditions for the lac Operon
Disorders and conditions that can be caused or aggravated by stress Disorders and conditions that can be caused or aggravated by stress
Video: Congenital Heart Defects Animation

For a complete list of videos, visit our video library