Author Question: ________ is defined as national income + transfers - taxes. A) Disposable income B) Personal ... (Read 119 times)

burchfield96

  • Hero Member
  • *****
  • Posts: 610
________ is defined as national income + transfers - taxes.
 
  A) Disposable income B) Personal income
  C) GDP D) Gross private domestic investment

Question 2

Workers at a local construction company are paid 32.50 per hour, and they have incorporated a 4 percent annual raise in their contracts to account for expected inflation.
 
  Explain how unexpected inflation of 2 percent will affect the real wages earned by these workers and the unemployment rate of these workers.



scrocafella

  • Sr. Member
  • ****
  • Posts: 346
Answer to Question 1

A

Answer to Question 2

If actual inflation is 4, a 4 increase in wages will allow workers to maintain their real wage. However, if inflation is lower than expected (2 instead of 4), the 4 increase in wages will increase the real wage, and firms will hire fewer workers than they had planned. As a result, unemployment will rise.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

For a complete list of videos, visit our video library