Suppose that product prices start rising but nominal wages do not. In that case,
A. real wages will fall and firms will want to produce more because doing so will be profitable.
B. real wages will rise and firms will want to produce more because doing so will be profitable.
C. there will be a surplus of goods and services produced.
D. there will be a shortage of goods and services produced.
Ans: A. real wages will fall and firms will want to produce more because doing so will be profitable.
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Refer to the scenario above. Which among the following is a possible outcome if the number of bidders decreases to 45?
A) There will be no change in the outcome of the auction. B) The optimal bid for Molly will now be $831.11. C) The optimal bid for Molly will now be $745. D) The optimal bid for Molly will now be $845.
With positive net exports, a nation is a net ________, and thus has a ________ "net foreign investment."
A) seller of assets to foreigners, positive B) seller of assets to foreigners, negative C) buyer of foreign assets, positive D) buyer of foreign assets, negative