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 66 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!

emsimon14

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Summary of events in a typical humoral immune response. Summary of events in a typical humoral immune response.
A pair of pygmy hippos at the Mount Kenya Wildlife Conservancy A pair of pygmy hippos at the Mount Kenya Wildlife Conservancy
Prevalence of PTSD and Traumatic Events Prevalence of PTSD and Traumatic Events
major events at the synapse major events at the synapse
Graph showing how the boiling point of the coolant increases as the percentage of antifreeze in ... Graph showing how the boiling point of the coolant increases as the percentage of antifreeze in ...
Events of the Somatic Cell Cycle Events of the Somatic Cell Cycle
Video: Mendel's pea plant, Pisum sativum experimental

For a complete list of videos, visit our video library