You are offered two jobs,one in Chicago paying $67,000 and one in Philadelphia paying $79,000.The price index in Chicago is 110.8,and in Philadelphia it is 126.5.If real wages are the only consideration,then:
A) you would be indifferent between the two jobs because the real wages would be about the same (within 2%) .
B) you would definitely take the job in Chicago because the real wage is higher there.
C) you would definitely take the job in Philadelphia because the real wage is higher there.
D) you would suffer from money illusion and be conflicted.
E) because there is a direct correlation between the real wage and the nominal wage, the job in Philadelphia is definitely the one to take.
Correct Answer:
Verified
Q101: Inflation creates uncertainty because
A) nominal values of
Q105: Deflation
A) automatically implies that,on average,everyone is better
Q112: As a business owner,you find that your
Q113: Milton Friedman,who won the Nobel Prize in
Q118: You are offered two jobs,one in Chicago
Q122: A price confusion problem is best described
Q124: Using the table below,compute the consumer price
Q125: The housing crisis has some roots in
Q142: Arguably there are three reasons why the
Q160: Define "inflation." Be specific.Be sure to address
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents