A worker would be hurt least by inflation when the:
a. worker anticipates inflation and increases savings at the bank.
b. worker is protected by a cost-of-living adjustment clause in an employment contract.
c. price level increases but at a decreasing rate.
d. worker is protected by fixed annual increases in wages and benefits in an employment contract.
b
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If wages are sticky, then a smaller than expected increase in the price level
a) reduces the real costs of production, so the aggregate quantity of goods and services rises. b) raises the real costs of production, so the short-run aggregate supply curve shifts left. c) reduces the real costs of production, so the short-run aggregate supply curve shifts right. d) raises the real costs of production, so the aggregate quantity of goods and services declines.
Among the problems associated with subsidizing an industry in the hope of establishing a worldwide monopoly is that if two nations subsidize firms in the same industry, each could lose money
Indicate whether the statement is true or false