How will nominal wages respond to a decrease in the price level in the short run?
What will be an ideal response?
Ans: Nominal wages will not change, or will change in an amount smaller than the change in the price level
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A difference between moral hazard and adverse selection is that
a. moral hazard deals with pre-contractually determined public information b. moral hazard deals with post-contractually determined private information c. adverse selection deals with pre-contractually determined private information d. adverse selection deals with post-contractually determined public information
Which of the following would shift a nation’s entire production possibilities curve outward?
a. moving from less than full employment to full employment. b. developing a more efficient technology. c. more efficiently allocating productive resources already available. d. All of these.