Author Question: Identify the correct statement. a. In periods of low inflation, real wages are constant but nominal ... (Read 23 times)

viki · **on:** Jun 30, 2018

Identify the correct statement.
a. In periods of low inflation, real wages are constant but nominal wages decline.
b. If the price level increases, real wages will increase.
c. If the price level increases, nominal wages will fall.
d. In periods of high inflation, real wages change even if nominal wages remain constant.
e. If the inflation rate is high, real wages and nominal wages change by the same amount.

Question 2

The demand for money is a relationship between:
a. the price level and the amount of cyclical unemployment.
b. the price level and the actual output produced in an economy.
c. the interest rate and how much money people choose to hold.
d. the interest rate and how much money people earn during a certain time period.
e. the interest rate and the rate of inflation.