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

Author Question: Assume that workers have perfect information about changes in inflation. Which of the following ... (Read 68 times)

tichca

  • Hero Member
  • *****
  • Posts: 554
on: Jun 30, 2018
Assume that workers have perfect information about changes in inflation. Which of the following statements is true in this context?
 a. Wage rates will not adjust immediately to the price level on account of the fixed contracts.
  b. The aggregate supply curve of the economy will become perfectly elastic.
  c. The aggregate supply curve will shift to the right.
  d. Nominal wage rates will always exceed the real wage rate.
  e. The economy will continue to produce at the potential level of real GDP.

Question 2

The larger the proportion of income spent on a product, other things equal, the:
 a. more unit elastic is a consumer's demand.
 b. more elastic is a consumer's demand.
 c. more inelastic is a consumer's demand.
 d. more vertical is a consumer's demand curve.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

parker125

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

e

Answer to Question 2

b


tichca

  • Member
  • Posts: 554
Reply 2 on: Jun 30, 2018
:D TYSM

kusterl

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

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.

Information flows from the nucleus to the cytoplasm and back. Information flows from the nucleus to the cytoplasm and back.
Healthy workers of the invasive garden ant (Lasius neglectus) remove an infectious fungal pathogen Healthy workers of the invasive garden ant (Lasius neglectus) remove an infectious fungal pathogen
Information Processing Model The components of the model operate simultaneously. Information Processing Model The components of the model operate simultaneously.
A summary of the major processes in information restructuring of DNA A summary of the major processes in information restructuring of DNA
Milk Label Containing Information about the Use of rBGH Milk Label Containing Information about the Use of rBGH
Specialized Workers: Soldier Ant Specialized Workers: Soldier Ant
Video: Skin Cancer

For a complete list of videos, visit our video library