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Author Question: If the price level increases by 5 percent and the nominal wage increases by 3.5 percent, the real ... (Read 110 times)

SGallaher96

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  • Posts: 509
on: Jun 30, 2018
If the price level increases by 5 percent and the nominal wage increases by 3.5 percent, the real wage will decrease by 1.5 percent.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If interest rates are to remain constant, the money supply should change:
 a. in the opposite direction to a change in aggregate demand.
  b. in the same direction as a change in money demand.
 c. only when investment changes.
 d. only when the demand for money decreases.
 e. only when the inflation rate changes.


Anna

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

True

Answer to Question 2

b


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