« previous next »

Author Question: Which of the following conditions will occur when two countries are engaged in a credible, fixed ... (Read 73 times)

imanialler

  • Hero Member
  • *****
  • Posts: 539
on: Jun 30, 2018
Which of the following conditions will occur when two countries are engaged in a credible, fixed exchange rate regime?
 
  A) E = 1
  B) E > 1
  C) i = i
  D) E < 1

Question 2

Explain what effect a reduction in the unemployment rate will have on the real wage based on: (1 ) the WS relation; and (2 ) the PS relation.
 
  What will be an ideal response?


juwms

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A reduction in the unemployment rate will increase bargaining power, increase the nominal wage, and therefore increase the real wage based on wage setting behavior. Changes in the unemployment rate have no effect on the real wage based on price setting behavior.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Various types of integumentary conditions. (E) Melanoma. Various types of integumentary conditions. (E) Melanoma.
Notice that there are conditions when the port fuel-injector, located in the intake manifold, and ... Notice that there are conditions when the port fuel-injector, located in the intake manifold, and ...
How to choose the right payment plan with changing conditions (Question 2) How to choose the right payment plan with changing conditions (Question 2)
How to choose the right payment plan with changing conditions (Question 4) How to choose the right payment plan with changing conditions (Question 4)
Healthy Eating around the World Many countries Healthy Eating around the World Many countries
Canadian seniors who suffer from select chronic conditions Canadian seniors who suffer from select chronic conditions
Video: Genetics of Cancer

For a complete list of videos, visit our video library