« previous next »

Author Question: Which of the following conditions will occur when two countries are engaged in a credible, fixed ... (Read 35 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?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Tongue Conditions, Candidiasis (Thrush) Tongue Conditions, Candidiasis (Thrush)
Vertebral compression Fractures of the spine (vertebra) can cause severe ”band-like” pain that radia Vertebral compression Fractures of the spine (vertebra) can cause severe ”band-like” pain that radia
Ectopic pregnancies. (a) An ectopic pregnancy may occur in any of the locations shown. Interstitial Ectopic pregnancies. (a) An ectopic pregnancy may occur in any of the locations shown. Interstitial
Conditions Required for Bacterial Growth Conditions Required for Bacterial Growth
Although the highest rates of disordered eating patterns occur among females, males are not immune Although the highest rates of disordered eating patterns occur among females, males are not immune
A company that makes cell phones has the following cost structure. They have fixed costs of ... A company that makes cell phones has the following cost structure. They have fixed costs of ...
Video: Knee Animation

For a complete list of videos, visit our video library