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

Author Question: The natural rate of output is ________. A) independent of the inflation rate B) always lower ... (Read 86 times)

Bernana

  • Hero Member
  • *****
  • Posts: 530
on: Jun 30, 2018
The natural rate of output is ________.
 
  A) independent of the inflation rate
  B) always lower than potential output
  C) unrelated to the natural rate of unemployment
  D) all of the above
  E) none of the above

Question 2

Is there a positive or negative relationship between real wages and output in the classical model? Explain.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nanny

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

The answer depends upon whether labor supply or labor demand is shifting. If an increase in output is caused by an increase in labor supply, then there is a negative relationship between real wages and output. If an increase in labor demand causes the increase in output, then real wages and output are positively related.


Bernana

  • Member
  • Posts: 530
Reply 2 on: Jun 30, 2018
Gracias!

upturnedfurball

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Effects of growth rate on development. Effects of growth rate on development.
Changes in metabolic rate of selected structures in a mammal's body during different activities Changes in metabolic rate of selected structures in a mammal's body during different activities
Sunlight on Mars is dimmer than on Earth. This photo of a Martian sunset was imaged by Mars Pathfind Sunlight on Mars is dimmer than on Earth. This photo of a Martian sunset was imaged by Mars Pathfind
Natural Settings Natural Settings
Stretching the flexors of the foot in plantarflexion, recipient prone. Lower leg perpendicular to ... Stretching the flexors of the foot in plantarflexion, recipient prone. Lower leg perpendicular to ...
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
Video: Role of the respiratory system - effect of altered ventilation rates

For a complete list of videos, visit our video library