The adjustment of nominal incomes to changes in the price level ...

[formula1]

The adjustment of nominal incomes to changes in the price level (CPI) is fixed because of the:
 a. volatility of investment spending.
 b. existence of long-term contracts.
 c. complete information possessed by workers.
  d. all of the above.

Question 2

Domestic law and order, the infrastructure, and the climate of international trade are all aspects of a country's:
 a. natural resources endowment. b. human resources investment.
  c. capital investment. d. political environment.

[nikmaaacs]

Answer to Question 1

b

Answer to Question 2

d