This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The natural rate of output is ________. A) independent of the inflation rate B) always lower ... (Read 129 times)

Bernana

  • Hero Member
  • *****
  • Posts: 530
on: Jun 30, 2018
The natural rate of output is ________.
 
  A) independent of the inflation rate
  B) always lower than potential output
  C) unrelated to the natural rate of unemployment
  D) all of the above
  E) none of the above

Question 2

Is there a positive or negative relationship between real wages and output in the classical model? Explain.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nanny

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

The answer depends upon whether labor supply or labor demand is shifting. If an increase in output is caused by an increase in labor supply, then there is a negative relationship between real wages and output. If an increase in labor demand causes the increase in output, then real wages and output are positively related.


Bernana

  • Member
  • Posts: 530
Reply 2 on: Jun 30, 2018
Gracias!

isabelt_18

  • Member
  • Posts: 342
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Dentition of a collared peccary, as illustrated in Knight's Sketches in Natural History Dentition of a collared peccary, as illustrated in Knight's Sketches in Natural History
Relative rate test, calibrating the molecular clock, and calculating divergence dates. Relative rate test, calibrating the molecular clock, and calculating divergence dates.
The term “natural,” when used on the packaging of meat and poultry The term “natural,” when used on the packaging of meat and poultry
Relationship between Income Inequality and the Desired Tax Rate Relationship between Income Inequality and the Desired Tax Rate
Role of Productivity in Determining Output per Worker, 2009 Role of Productivity in Determining Output per Worker, 2009
Outgroup role in relative rate test Outgroup role in relative rate test
Video: Magnetic resonance imaging (MRI)

For a complete list of videos, visit our video library