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Unformatted text preview: Georgia State University Principles Macroeconomics, ECON 2105 Quiz # 8 Key Multiple choice questions: select the best answer (two points each). 1. One of the solutions to the structural unemployment problem is a. a reduction in wage rates. b. increasing efficiency of the job search through better information on local job openings. ♣ retraining workers in marketable skills . d. promotion of full employment through government stabilization policies. e. to reduce the cost of relocation through tax incentives. 2. Suppose you sign a contract stipulating a 4% increase in nominal (current money) wages. That year, inflation runs about 7%. Which of the following is true? a. The real wage increased. b. The nominal wage decreased. c. Both the nominal and real wages decreased. d. Although the nominal wage fell, the real wage increased. ♠ Although the nominal wages rose, the real wage decreased ....
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This note was uploaded on 01/18/2011 for the course ECON 11853 taught by Professor Brianallenhunt during the Fall '10 term at Georgia State.
- Fall '10