Author Question: During a particular year, nominal wages increased by 4 percent but real wages declined by 2 percent. ... (Read 136 times)

tth · **on:** Jun 30, 2018

During a particular year, nominal wages increased by 4 percent but real wages declined by 2 percent. This implies that the price level increased by 6 percent.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If the Fed targets the interest rate, then:
a. the money supply will grow at a more controlled rate.
b. monetary policy will reinforce fluctuations in economic activity.
c. the price level will be more stable in the long run.
d. money demand will be more stable.
e. velocity will be less stable.