Wage setting
A) is based only on wages expected to be paid elsewhere.
B) depends on both expected inflation and relative wages.
C) occurs without regard to inflation or wages being paid by other firms.
D) is based only on expected inflation.
E) is based only on the previous period's wages.
Correct Answer:
Verified
Q146: The IA line will move down if
A)potential
Q147: If a firm expects the rate of
Q148: If real GDP is less than potential
Q149: When real GDP is above potential GDP,
Q150: If real GDP is greater than potential
Q152: When real and potential GDP are equal,
A)prices
Q153: The inflation adjustment line is horizontal because
Q154: The inflation adjustment line IA will shift
Q155: Changes in aggregate demand can cause inflation
Q156: Expectations of steady inflation and staggered wage
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