Explain what is meant by the "wage-price" spiral
What will be an ideal response?
The wage-price spiral refers to the effects of low unemployment on inflation. Specifically, when the unemployment rate falls, the nominal wage will rise. As W rises, firms' costs increase causing them to increase prices. As prices rise, workers will later ask for increases in the nominal wage. This increase in W again causes firms' costs and prices to rise and the process repeats itself.
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The Fed's quick response to the threat to the economy after September 11, 2001, makes a strong case for
a. a rules-based monetary policy regime. b. a discretionary-based monetary policy regime. c. the superiority of fiscal policy. d. the dominant role of Congress in activist policy.
A complete definition of corporate governance is? ________.
A. a description of how shareholders who own common stock conduct business B. the description of responsibilities and performance of the board of directors C. one that is of vital concern for society as a? whole, not just for the individual companies themselves D. a description of all the? policies, procedures,? relationships, and systems in place to oversee the successful and legal operation of the enterprise E. a description of how shareholders elect a board of directors to represent them