Author Question: When the unemployment rate is on the horizontal axis and the real wage is on the vertical axis, a ... (Read 40 times)

eruditmonkey@yahoo.com · **on:** Jun 30, 2018

When the unemployment rate is on the horizontal axis and the real wage is on the vertical axis, a reduction in productivity will cause which of the following to occur?

A) The wage-setting and price-setting curves will both shift downward.
B) The wage-setting and price-setting curves will both shift upward.
C) The price-setting curve to shift downward, and no shift in the wage-setting curve.
D) The wage-setting curve to shift upward, and the price-setting curve to shift downward.
E) The wage-setting curve to shift downward, and the price-setting curve to shift upward.

Question 2

Suppose a one-year discount bond offers to pay 1000 in one year and currently sells for 950. Given this information, we know that the interest rate on the bond is

A) 5.3.
B) 9.5.
C) 10.
D) 90.
E) 110.