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Author Question: Based on our understanding of the wage setting equation, which of the following will not cause a ... (Read 60 times)

vicky

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  • Posts: 586
on: Jun 30, 2018
Based on our understanding of the wage setting equation, which of the following will not cause a reduction in the nominal wage?
 
  A) an increase in unemployment
  B) a reduction in the expected price level
  C) a reduction in expected productivity
  D) all of the above
  E) none of the above

Question 2

Based on our understanding of the model presented in Chapter 3, a reduction in investment will cause
 
  A) an increase in the multiplier.
  B) a reduction in the multiplier.
  C) a reduction in the marginal propensity to save.
  D) a reduction in output.
  E) both B and D


Tabitha_2016

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Reply #1 on: Jun 30, 2018
Answer to Question 1

E

Answer to Question 2

D


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