For this question, assume that firms' of productivity are accurate while workers' expectations of productivity adjust slowly over time. In this case, an increase in productivity will cause which of the following?
A) an increase in both the real wage and the natural rate of unemployment
B) a decrease in both the real wage and the natural rate of unemployment
C) an increase in the real wage and a reduction in the natural rate of unemployment
D) a decrease in the real wage and an increase in the natural rate of unemployment
E) none of the above
C
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Suppose you are a U.S. exporter expecting to receive a payment of NZD1,000 (New Zealand dollars) in 12 months. The annual interest rate on NZD deposits is 5 percent, and the annual interest rate on dollar deposits is 9 percent. If the present exchange rate is $0.50 per NZD and interest rate parity holds, how many dollars do you expect to receive at the maturity date of the export contract?
a. $2,000 b. $1,923 c. $1,000 d. $580 e. $520
According to the graph shown, if this economy were to open to trade, domestic producers would increase:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. enjoy a net gain to surplus of BC.
B. suffer a net loss to surplus of BCD.
C. suffer a transfer of surplus to producers of BC.
D. experience deadweight loss of FG.