Author Question: If the real interest rate is 5 percent and the nominal interest rate is 2 percent, this implies an ... (Read 91 times)

CQXA · **on:** Jun 30, 2018

If the real interest rate is 5 percent and the nominal interest rate is 2 percent, this implies an expected inflation rate of

A) -7 percent. B) -3 percent. C) 3.5 percent. D) 7 percent.

Question 2

Refer to the figure above. What is the equilibrium wage rate and employment level after the labor demand curve shifts to LD2?

A) 50 and 50 units of labor B) 40 and 30 units of labor
C) 20 and 40 units of labor D) 10 and 60 units of labor