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

Author Question: In the market for jeans, which of the following events increases the de-mand for a pair of jeans? ... (Read 120 times)

Bob-Dole

  • Hero Member
  • *****
  • Posts: 547
on: Jun 29, 2018
In the market for jeans, which of the following events increases the de-mand for a pair of jeans?
 
  A. The wage rate paid to garment workers rises.
  B. The price of a denim skirt (a substitute for jeans) rises.
  C. The price of denim cloth falls.
  D. New technology reduces the time it takes to make a pair of jeans.

Question 2

Explain why expansionary monetary policy would not result in reduced unemployment rates if workers and firms have rational expectations.
 
  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

vkodali

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 29, 2018
Answer to Question 1

B The other factors listed change the supply; only answer B in-creases the demand.

Answer to Question 2

If workers and firms have rational expectations, they anticipate that expansionary monetary policy will increase inflation. The increase in inflation expectations will be incorporated into wage contracts, resulting in no change in the real wage. If there is no change in the real wage, then there will be no change in unemployment and no change in real GDP. As a result, there will be no trade-off between unemployment and inflation. Inflation will rise, but the unemployment rate will not be affected.


Bob-Dole

  • Member
  • Posts: 547
Reply 2 on: Jun 29, 2018
Gracias!

Dominic

  • Member
  • Posts: 328
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Arctic and alpine cushion plant form and orientation increases heat gain from sunlight and the surro Arctic and alpine cushion plant form and orientation increases heat gain from sunlight and the surro
Model for the events occurring around a single replication fork Model for the events occurring around a single replication fork
Does emotion enhance memory for events? Does emotion enhance memory for events?
Mechanical Events Mechanical Events
Markets and Institutions Market Story Problem Markets and Institutions Market Story Problem
Stripe pattern of pair-rule gene expression in a Drosophila embryo Stripe pattern of pair-rule gene expression in a Drosophila embryo
Video: Bond types - Atomic structure and basis of bonds

For a complete list of videos, visit our video library