This topic contains a solution. Click here to go to the answer

Author Question: Assume that workers have perfect information about changes in inflation. Which of the following ... (Read 66 times)

tichca

  • Hero Member
  • *****
  • Posts: 554
Assume that workers have perfect information about changes in inflation. Which of the following statements is true in this context?
 a. Wage rates will not adjust immediately to the price level on account of the fixed contracts.
  b. The aggregate supply curve of the economy will become perfectly elastic.
  c. The aggregate supply curve will shift to the right.
  d. Nominal wage rates will always exceed the real wage rate.
  e. The economy will continue to produce at the potential level of real GDP.

Question 2

The larger the proportion of income spent on a product, other things equal, the:
 a. more unit elastic is a consumer's demand.
 b. more elastic is a consumer's demand.
 c. more inelastic is a consumer's demand.
 d. more vertical is a consumer's demand curve.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

parker125

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

e

Answer to Question 2

b




tichca

  • Member
  • Posts: 554
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


rleezy04

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Excellent

 

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

For a complete list of videos, visit our video library