If the percentage increase in nominal wage rates is less than the ...

[schs14]

If the percentage increase in nominal wage rates is less than the percentage increase in the price level, then:
 a. real wage rate rises and the unemployment rate falls.
  b. both real wage rate and the unemployment rate rises.
  c. both real wage rate and the unemployment rate falls.
  d. real wage rate rises and the unemployment rate remains unchanged.
  e. both real wage rate and the unemployment rate remains unchanged.

Question 2

If Pizza Hut decreases its price for a large pizza by 25 and this leads to a 75 increase in sales, we can conclude that demand is relatively elastic with regard to price over that range.
 a. True
  b. False
  Indicate whether the statement is true or false

[bdobbins]

Answer to Question 1

c

Answer to Question 2

True

[schs14]

Thank you

[bdobbins]

No problemo