Do not use chatgpt. Consider a country that has experienced a decline in labor demand that results in a 2 percent reduction in the equilibrium real wage.a. If the inflation rate in the country has been at zero percent, what has to happen to the nominal wage to restore labor marketequilibrium?The nominal wage will decrease by more than 2%.O The nominal wage will not change.The nominal wage will increase by 2%.The nominal wage will decrease by 2%.b. If the inflation rate in the country has been at 4 percent, what has to happen to the nominal wage to restore labor marketequilibrium?The nominal wage will not change.The nominal wage will increase by 2%.O The nominal wage will decrease by more than 2%.O The nominal wage will decrease by 2%.Which of the following is true?Workers and employers are likely to prefer a four percent inflation rate because nominal wages will be higher.Workers will prefer zero percent inflation and employers will prefer four percent inflation.Workers will prefer four percent inflation and employers will prefer zero percent inflation.○ Workers and employers are likely to prefer a zero percent inflation rate because nominal wages will be higher.

Step 1: The rate of inflation is expressed as the percentage increase in the general level of prices…

Answered: Consider a country that has experienced…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 13P

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If inflation rises unexpectedly by 5, indicate for each of the following whether the economic actor is helped, hurt, or unaffected: A union member with a COLA wage contract Someone with a large stash of cash in a safe deposit box A bank lending money at a fixed rate of interest A person who is not due to receive a pay raise for another 11 months
Define the real wage as the nominal wage, w, divided by the price level P. Nominal wages grew by 10%, and inflation was 5%. What is the approximate change in real wages? a. 3% b. -3% c. -5% d. 5%
Inflation is best described as: A sustained increase in the demand for goods and services. A sustained increase in output and employment over time. A sustained increase in the supply of currency. O O O A sustained increase in prices over time. A sustained increase in the price of one or two essential goods like the price of gasoline and food. Moving to the next question prevents changes to this answer. JUL 19 tv 10 MacBook Pro A
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"Japan's real gross domestic product (GDP) inched up 0.3 percent in the second quarter compared to the previous quarter, up 1.3 percent at an annual rate, according to statistics released by the Cabinet Office on Monday." Japan's real gross domestic product (GDP) is equal to the sum of current year prices multiplied by base year quantities. Select one: True O False "A higher inflation rate will be built into the expectations of workers and a higher inflation rate will offset the incentive effect on workers to work more under the higher nominal wage increase." This inturn will skew the distribution of income and lead to greater income inequality. Select one: O True O False
It is known that in an economy the standard basket is compound according to this table: Year Food Culture Ma Dwelling P₁ P₂ Q₂ 2019 3 5 3 1 2020 4 10 4 2 4 6 2021 4 10 4 3 Calculate a general price index, and obtain the inflation rate of the economy over time If there were only one nominal wage for all workers in this economy and this wage was 1,000 m.u in 2019, how much has to be the nominal wage in 2020 and 2021 to maintain their purchasing power Q₁ P3 4 4 Q3 3 3
Explain why the wages in an economy are downward rigid/sticky but not upward sticky. How does this rigidity/stickiness help to explain why the government is more likely to try to stabilize the during a recession than during an expanston. As a rough expectation, your answer should be 200-500 words (there is no formal limit). economy EFocus Your (`ynress MQuntain aT7 English (Canada) porenly étv APR 7
Which of the following is (are) CORRECT? O a. Unanticipated inflation benefits borrowers O b. The NAIRU for the USA is zero All of the answers are correct O d. Real interest rates are always positive
Please give just answer. There is no need to explain. i. If a country experiences high GDP and inflation, followed by a lower GDP and deflation, this is an example of O Unemployment O Recession O the Business Cycle O Supply and Demand O None of the above ji. What causes inflation? O People don't have enough money O People have too much money O People have too much money and many businesses want some of that money People owe a lot of money The government causes inflation by raising interest rates iii. The Water and Diamond Paradox explains: Why supply and demand always meets in the middle of a graph O Marginal utility of diamonds O Why water is inexpensive while diamonds are so expensive O Why water is so expensive while diamonds are inexpensive O None of the above iv. The unemployment rate is: O The number of people who don't want to work The number of people who are working but don't want to work The number of people who don't want to work and are not working The number of people who…
Oil prices are on track to reach $100 a barrel this month for the first time in 2023 after surging by almost 30% sinceJune, after Russian and Saudi Arabian production cuts and rising demand from China.With many industries being heavily reliant on energy and transportation, what type of inflation would this leadto in South Africa?A. Demand-pull inflationB. Cost-push inflationC. StagflationD. HyperinflationWhat is one of the potential effects of the aforementioned inflation on the South African economy?A. Decreased purchasing power of money.B. Increased consumer savings.C. Reduced interest rates on loans.D. Higher demand for imports.
25 Which of these statements is true about inflation? O a. It shows changes in the general prices of goods and services put of O b. It is calculated by comparing local prices with imported products O c. It compares the relative changes of prices of agricultural and technological products O d. It is always based on the prices of exports 26 Abeer is a skilled cheesemaker but due to the technology in making cheese, she lost her job. In which type of unemployment does Abeer belong to? put of O a. Cyclical O b. Natural O c. Structural O d. Frictional 27 Which of these is not accurate? O a. GDP covers outputs made in the past out of O b. GDP reflects medical expenditure but not mortality rates O c. GDP is not an accurate measure human welfare O d. GDP does not measure income inequality
stion 10 n Which statement is CORRECT? O The Consumer Price Index is considered the best measure of long-term, underlying inflation. A worker who is retired is considered unemployed. Any person who can work and is of working age is considered part of the labor force. O The purchase of flour by a bakery is not counted as GDP. O Core inflation uses a price index to measure inflation by excluding stock and real estate prices in its calculation. #3 E D C A Moving to the next question prevents changes to this answer. Q $ 4 R F V % 5 T 19 tv G 6 B Y H & 7 N U * 00 8 J 4+ M 9 Tec ( K O 4 L

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