An efficiency wage is ________ and results in ________
A) equal to the equilibrium wage; full employment
B) above the equilibrium wage; a surplus of labor
C) below the equilibrium wage; a shortage of labor
D) above or below the equilibrium wage; a surplus or shortage of labor
B
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Because inflation in Germany after World War I sometimes exceeded 1,000 % per month, one can conclude that the German economy suffered from
A) deflation. B) disinflation. C) hyperinflation. D) superdeflation.
Which of the following statements about unanticipated inflation is true?
a. It reduces average purchasing power in the economy. b. It reduces total purchasing power in the economy. c. It redistributes purchasing power in the economy. d. It reduces nominal wages. e. Its effects are spread evenly throughout the economy so that no one gains or loses from inflation.