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To Calculate the Relative Price of Labor, One Needs to Know

Question 132

Multiple Choice

To calculate the relative price of labor, one needs to know


A) only the reciprocal of the price level.
B) both the nominal wage and the price level.
C) the nominal market wage relative to wages paid elsewhere.
D) only the nominal market wage.
E) both the price of consumer goods and the price of the product being produced.

Correct Answer:

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