A labor union anticipates a 7 percent inflation rate in each of the next three years. It wants to obtain a 3 percent increase in real wages in each of those three years. To obtain this goal, the requisite nominal wage hike it should negotiate is
a. 7 percent each year
b. 3 percent each year
c. 10 percent each year
d. 10 percent the first year and 3 percent each year thereafter
e. 21 percent the first year and 3 percent each year thereafter
C
Economics
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Refer to the data provided in Table 9.1 below to answer the question(s) that follow.
Table 9.1
Refer to Table 9.1. If the market price is $17, then in the short run the firm will
A. operate and expand. B. operate but not expand. C. shut down, but not go out of business. D. go out of business.
Economics
If the demand for green tea increases as income increases, green tea is a(n)
A. substitute good. B. normal good. C. complementary good. D. inferior good.
Economics