Suppose the real wage of a worker remains unchanged between Year 1 and Year 2 but the nominal wage decreases from $20 in Year 1 to $18 in Year 2 . This implies that the price level has:
a. increased by 20 percent.
b. increased by 25 percent.
c. remained unchanged

Moving along the AS curve, when the price level increases, the

A) nominal wage rate falls, and there is an increase in the quantity of real GDP supplied. B) real wage rate rises, and there is an increase in the quantity of real GDP supplied. C) nominal wage rate rises, and there is a decrease in the quantity of real GDP supplied. D) real wage rate falls, and there is an increase in the quantity of real GDP supplied. E) real wage rate rises, and there is a decrease in the quantity of real GDP supplied.

In most less developed countries, the initial target of import substitution is to promote domestic production of

(a) consumer goods. (b) food and other agricultural goods. (c) capital goods. (d) manufactured intermediate goods.