Suppose a local union has a contract that calls for the nominal wage to increase by 5 percent plus 100 percent of any increase in the CPI. If the CPI increases by 4% and there is a 1% positive bias in the inflation rate, by how much would nominal wages unnecessarily increase?
a. 9 percent
b. 1 percent
c. 5 percent
d. 3 percent
e. 4 percent
B
Economics
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The explicit costs of an item include all of those things that must be forgone to acquire that item
a. true b. false
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Use the saving and investment equation to explain why the United States experienced large current account deficits in the late 1990s
What will be an ideal response?
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