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

Author Question: Discuss what factors could cause a real depreciation. What will be an ideal ... (Read 112 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566
on: Jun 30, 2018
Discuss what factors could cause a real depreciation.
 
  What will be an ideal response?

Question 2

Explain what is meant by the wage-price spiral.
 
  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

fatboyy09

  • Sr. Member
  • ****
  • Posts: 358
Reply #1 on: Jun 30, 2018
Answer to Question 1

Decrease in E; increase in P; and decrease in P.

Answer to Question 2

The wage-price spiral refers to the effects of low unemployment on inflation. Specifically, when the unemployment rate falls, the nominal wage will rise. As W rises, firms' costs increase causing them to increase prices. As prices rise, workers will later ask for increases in the nominal wage. This increase in W again causes firms' costs and prices to rise and the process repeats itself.


pragya sharda

  • Member
  • Posts: 566
Reply 2 on: Jun 30, 2018
Wow, this really help

ttt030911

  • Member
  • Posts: 315
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Interaction of transcription factors with DNA Interaction of transcription factors with DNA
Factors affecting communication Factors affecting communication
Five Factors of Personality and the Traits they Include Five Factors of Personality and the Traits they Include
Monozygotic twins’ scores for five personality factors show higher correlations than scores for ... Monozygotic twins’ scores for five personality factors show higher correlations than scores for ...
The primary factors affecting blood pressure. The primary factors affecting blood pressure.
Which of the following unit factors is not related to a 0.100 M NaBr solution? A Which of the following unit factors is not related to a 0.100 M NaBr solution? A
Video: Griffith's experiments

For a complete list of videos, visit our video library