Based on our understanding of the wage setting equation, which of ...

[vicky]

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]

Answer to Question 1

E

Answer to Question 2

D