Which of the following is an example of money illusion?
A) An individual is willing to work more hours when the nominal wage rises by 10 percent and the overall price level rises by 5 percent.
B) An individual is willing to work more hours when the nominal wage rises by 10 percent and the overall price level rises by 20 percent.
C) An individual will neither increase nor decrease the number of hours she is willing to work when the nominal wage rises by 10 percent and the overall price level rises by 10 percent.
D) none of the above
Correct Answer:
Verified
Q12: Whom among the following was a classical
Q13: "Supply creates its own demand" is known
Q14: If a consumer buys less gasoline because
Q15: All of the following were classical economists
Q16: According to the classical model, the income
Q18: In the classical model, an increase in
Q19: Classical economists assumed that
A) prices were flexible.
B)
Q20: Say's law says that
A) consumption is greater
Q21: According to classical economists
A) Say's law is
Q22: At higher rates of interest
A) households save
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