An economy currently has an inflationary gap. An increase in the money wage rate will ________ the inflationary gap and ________ the price level
A) decrease; decrease
B) increase; increase
C) increase; decrease
D) decrease; increase
D
Economics
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When the Fed sells bonds, the quantity of reserves in the banking system declines and the money supply decreases.
a. true b. false
Economics
The price elasticity of demand is equal to
A) the percentage change in quantity demanded divided by the percentage change in price. B) the change in quantity demanded divided by the change in price. C) the percentage change in price divided by the percentage change in quantity demanded. D) the value of the slope of the demand curve.
Economics