Solved

(Table: Sales and Payments) Suppose That the Price of the Manufactured

Question 118

Multiple Choice

(Table: Sales and Payments) Suppose that the price of the manufactured good rises by 20% with no change in the price of the agricultural good. Wages in both sectors rise by 10%. Which of the following is the correct ordering (from highest to lowest) of changes in the real wage, real rental on capital, and real rental on land? (Table: Sales and Payments)  Suppose that the price of the manufactured good rises by 20% with no change in the price of the agricultural good. Wages in both sectors rise by 10%. Which of the following is the correct ordering (from highest to lowest)  of changes in the real wage, real rental on capital, and real rental on land?   A)  real rental on land, real wage, real rental on capital B)  real wage, real rental on land, real rental on capital C)  real rental on capital, real rental on land, real wage D)  real rental on capital, real wage, real rental on land


A) real rental on land, real wage, real rental on capital
B) real wage, real rental on land, real rental on capital
C) real rental on capital, real rental on land, real wage
D) real rental on capital, real wage, real rental on land

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents