If nominal wage rates are contractually determined and cannot change in the short run, then an unexpected increase in the inflation rate will:
a. increase business profits and reduce the unemployment rate.
b. reduce both business profits and the unemployment rate.
c. reduce business profits and increase the unemployment rate.
d. increase both business profits and the unemployment rate.
e. cause no change in business profits or the unemployment rate
a
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Explain what would happen to the equilibrium price and quantity of pineapples if the supply of pineapples decreased while the demand for pineapples increased
What will be an ideal response?
If a trader thinks that the value of yen with respect to the euro is about to fall, which of the following would enable him to make a profit?
A) buy a forward contract for euros B) buy a forward contract for yen C) sell yen in the spot market D) buy euros in the spot market