Suppose a worker signs a contract containing a 7 percent nominal wage increase with inflation expected to be 5 percent. Inflation turns out to be 10 percent, but the contract also contains 50 percent COLA protection
The worker's real wage under the contract A) falls by 3.0 percent.
B) rises by 0.5 percent.
C) rises by 2.0 percent.
D) rises by 1.0 percent.
E) falls by 0.5 percent.
E
Economics
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Refer to Figure 5-13. The efficient equilibrium price of gasoline is ________ per gallon
A) $3.00 B) $3.75 C) $4.25 D) $5.00
Economics
In Figure 9-13, a movement of long-run equilibrium from point A to point C could be caused by a(n)
a.
decrease in supply from S2 to S1 in response to economic profits following a decrease in demand from D2 to D1
b.
increase in short-run supply from S1 to S2
c.
increase in supply from S1 to S2 in response to economic profits following an increase in demand from D1 to D2
d.
increase in demand from D1 to D2 in the short run
Economics