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 124 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
Thanks for the timely response, appreciate it

jordangronback

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Factors Affecting Body Temperature Factors Affecting Body Temperature
Factors Affecting Saturation and Condensation: Effect of Curvature Factors Affecting Saturation and Condensation: Effect of Curvature
Environmental and Lifestyle Factors of Weight Gain Environmental and Lifestyle Factors of Weight Gain
Factors That Contribute to Eating Disorders Factors That Contribute to Eating Disorders
Factors Affecting the Affinity of Hb for O2 Factors Affecting the Affinity of Hb for O2
Expansion factors for venturi flowmeters Expansion factors for venturi flowmeters
Video: How antibiotics works? 💊

For a complete list of videos, visit our video library