If workers push for wages that are beyond what productivity gains can justify ________
A) a temporary negative supply shock ensues driving up prices
B) a negative output gap ensues which will lead to higher unemployment if the Federal Reserve does not act
C) and the Federal Reserve eases monetary policy aimed at increasing aggregate demand to counter the negative supply shock, a price-wage spiral could ensue
D) all of the above
E) none of the above
D
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If the autarky price of S (in terms of T) were lower in country A than in country B,
A) A has a comparative advantage in S. B) B has a comparative advantage in T. C) A has a comparative disadvantage in T. D) All of the above.
Which of the following statements is correct? With respect to efficiency wage models,
a. their key element is an explanation of why the efficiency (or productivity) of workers depends on the real wage. b. the rationale underlying those models implies that firms will set the real wage above the market clearing level. c. they explain a real wage rigidity. d. all of the above