Author Question: Refer to Table 5.1. Hector should specialize in the production of A) bracelets. B) tiaras. C) ... (Read 40 times)

luminitza · **on:** Jun 29, 2018

Refer to Table 5.1. Hector should specialize in the production of

A) bracelets.
B) tiaras.
C) both products.
D) neither product.

Question 2

In order to keep the real wage rate constant, the

A) inflation rate must be exactly one half of the expected inflation rate.
B) money wage rate must increase by the same amount as the inflation rate.
C) money wage rate must increase when the price level falls.
D) money wage rate must decrease by the same amount as the inflation rate.
E) nominal interest rate must be equal to the inflation rate.