"It is possible to have a situation where the nominal wage is rising and the price level is falling, while the real wage still decreases." The statement above is true, false, uncertain, or not enough Information? Please show your explanation

Q: When a nominal value increases it must be true that prices have increased. Select one: True False

A: Nominal value: face value of an asset or security.

Q: n the following statement: “Wage indexation can lead to an inflation spiral

A: It can be defined as the work of linking the rise in wages to changes in an index of a specific…

Q: In 2014, some European countries were dealing with a recession. Workers who were laid off in those…

A: In an economy, unemployment is classified in 4 ways such that Seasonal unemployment Cyclical…

Q: Suppose the unemployment rate is 7% under one of these two outcomes and 5% under the other. Based on…

A: As higher output associated with lower unemployment and lower output is associated with higher…

Q: Deflation refers to a situation where price level falls price level rises the rate of inflation…

A: Deflation is one of the components of the business cycle. The business cycle refers to those…

Q: If 15 million people are unemployed and 65 million people are employed, calculate the unemployment…

A: "Unemployment means when people don't have job but are capable of working and are actively looking…

Q: Are wages more sticky upwards or downwards? Why? Explain.

A: Introduction  In economics, wage may be defined as the sum of money paid under contract by an…

Q: In 1954, Canadian Prime Minister Louis Stephen St. Laurent was paid a salary of $15 000. Stephen…

A: A price index is a metric that measures the proportionate, or percentage, change in a set of prices…

Q: what is the art majors salary in 2011? 2012?

A: IntroductionThe Consumer Price Index (CPI) is a measure of inflation used by economists to assess…

Q: Calculate the unemployment rate based on the following information: Working-age population: 219…

A: Unemployment is an economic problem that occurs when people who are able and willing to work fail to…

Q: In the short run, an increase in the unemployment rate is likely to be accompanied by

A: In the short run, an increase in unemployment is likely to be accompanied by decrease in the…

Q: If, out of a population of 325 million, 140 million people are in the labor force and 133 million…

A: Total Population = 325 milion Labour force = 140 million Employed = 133 million

Q: For a number of reasons, economists believe that the natural rate of unemployment in the U.S.…

A: The Natural rate of unemployment refers to the unemployment rate that exists in the healthy and…

Q: Since 1960 there has been a substantial increase in unemployment rates in major European countries.…

A: The unemployment refers to the phenomenon in which the people who are willing to work at the…

Q: When a nominal value is unchanged it must be true that prices have remained unchanged. Select one:…

A: Introduction: Nominal Value: It is the value or price of the commodity that does not include…

Q: Price-setting relation shows that real wage is a decreasing function of the unemployment rate, shown…

A: Real wage is the wages divided by price level in the economy. So Real wage is adjusted for inflation…

Q: Your senators claim that lowering prices would be good for everyone—“Who doesn’t like lower prices,…

A: The phase of falling prices in the economy no pertaining to a particular industry but for a fall in…

Q: During the Great Recession of 2008, many workers became discouraged and dropped out of the labor…

A: Labor force is a sum of people unemployed and people employed.

Q: Would you expect hidden unemployment to be higher, lower, or about the same when the unemployment…

A: Hidden unemployment includes those individuals people who are either underemployed or are…

Q: How do expectations about future economic conditions influence the speed of  adjustment? Are there…

A: Economic development refers to the process of improving the economic well-being and quality of life…

Q: Jake is a full-time worker. Today, he is fired from his job, and he suddenly decides to retire. Due…

A: Here, jr is given that that an lost his job and become unemployed, but at the same time, he decides…

Q: Suppose a firm’s hourly marginal product of labour is given by MPN = 0.2(200 − N), where N is the…

A: Full employment is the condition where all people who are available and searching for work can find…

Q: How can seasonal unemployment be alleviated? Should it be alleviated? Why or why not?

A: Seasonal unemployment means a situation when individuals are not having jobs(unemployed) at…

Q: Use the FRED database (https://fred.stlouisfed.org/) to find out what happened to the price of oil…

A: An increase in the price of oil  can have different effects on the economy. Higher oil prices can…

Q: An economy is described by the following equations C = 62 + 0.6 (Y - T) T = 100 IP = 200 G = 80…

A: C: Consumption Y: Actual Output (600)T: Taxes (100)IP: Investment (200)G: Government Spending…

Q: True or false? If unemployed workers become so frustrated from being unable to find new full-time…

A: The unemployment rate: It is the percentage of unemployed workers in the total labor force. Workers…