Author Question: Which of the following is generally true of nominal wages? a. In the long run, nominal wages tend ... (Read 64 times)

j.rubin · **on:** Jun 30, 2018

Which of the following is generally true of nominal wages?
a. In the long run, nominal wages tend to equal real wages.
b. Nominal wages are more flexible downward than upward.
c. Nominal wages are more flexible than prices.
d. Nominal wages tend to adjust slowly in the downward direction.
e. Nominal wages do not rise during labor shortages.

Question 2

Which of the following is an example of an expansionary monetary policy?
a. A reduction in government purchases of goods and services
b. An increase in the discount rate
c. An open market sale of U.S. government securities
d. A reduction in the required reserve ratio
e. A tax cut