When workers expect the real wage to rise at a rate similar to productivity improvements, ________

Suppose that the cross price elasticity of demand between good X and good Y is -1.55. This indicates that the two goods are

A) substitutes. B) complements. C) both inferior. D) completely unrelated in the minds of consumers.

For each watch that Switzerland produces, it gives up the opportunity to make 50 pounds of chocolate. Germany can produce 1 watch for every 100 pounds of chocolate it produces. Which of the following is true about the comparative advantage between the

two countries? A) Switzerland has the comparative advantage in chocolate. B) Switzerland has the comparative advantage in watches. C) Germany has the comparative advantage in watches and chocolate. D) Germany has the comparative advantage in watches.