« previous next »

Author Question: When the dollar depreciates relative to the pound, the pound price of the dollar A) increases. ... (Read 115 times)

fasfsadfdsfa

  • Hero Member
  • *****
  • Posts: 554
on: Jun 30, 2018
When the dollar depreciates relative to the pound, the pound price of the dollar
 
  A) increases.
  B) decreases.
  C) does not change.
  D) increases or decreases, depending on the amount of the depreciation.
  E) changes in the next period.

Question 2

Graphically illustrate (using the WS and PS relations) and explain the effects of a reduction in the minimum wage on the equilibrium real wage, the natural rate of unemployment, the natural level of employment, and the natural level of output.
 
  What will be an ideal response?


princessflame2016

  • Sr. Member
  • ****
  • Posts: 298
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

A reduction in the minimum wage will cause the nominal wage based on wage setting behavior to decrease; this is represented as an downward shift in the WS relation. As the nominal wage deceases, firms will respond by reducing the price level so we will observe no change in the equilibrium real wage. We will observe a decrease in the natural rate of unemployment and an increase in both the natural level of employment and output.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

The relative sizes of inorganic soil components. The relative sizes of inorganic soil components.
Arctic and alpine cushion plant form and orientation increases heat gain from sunlight and the surro Arctic and alpine cushion plant form and orientation increases heat gain from sunlight and the surro
Major moons of Uranus in order of increasing distance (left to right), at their proper relative size Major moons of Uranus in order of increasing distance (left to right), at their proper relative size
Stratigraphic section of the Fayum shows the relative age of early anthropoid fossils. Stratigraphic section of the Fayum shows the relative age of early anthropoid fossils.
Relative Ventricular Size in Chronic Schizophrenics and Controls Relative Ventricular Size in Chronic Schizophrenics and Controls
Relative Size of the Body’s Fluid Compartments Relative Size of the Body’s Fluid Compartments
Video: Wound Repair Animation

For a complete list of videos, visit our video library