ihw10ANS

ihw10ANS - IHW10 Question4 - Single Correct 1.0 Point The...

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IHW10 Question4 - Single Correct 1.0 Point The sticky wage theory of the short-run aggregate supply curve says that when the price level rises more than expected, the real wage A rises, so employment rises. B rises, so employment falls. C falls, so employment rises. D falls, so employment falls. REAL WAGE IS W/P SO IF P RISES MORE THAN EXPECTED (MORE THAN W) THEN W/P FALLS AND WITH LOWER REAL WAGE (REAL COST OF HIRING WORKERS) MORE WORKERS WILL BE HIRED AND OUTPUT WILL INCREASE ALONG THE SR AGG S CURVE Question11 - Single Correct 1.0 Point The potential level of output can be altered by changes in A the actual price level B the expected price level C aggregate demand D real GDP E a nation's stock of capital YPOTENTIAL = F(K,L,ETC) SO INCREASE IN K, L INCREASES POTENTIAL Y Question18 - Single Correct 1.0 Point If the money supply growth rate permanently increased from 3 percent to 13 percent, we would expect that A inflation would increase by 10 percent, and the nominal interest rate would increase by less than 10 percent. B
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This document was uploaded on 10/31/2011 for the course 202 101 at Rutgers.

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ihw10ANS - IHW10 Question4 - Single Correct 1.0 Point The...

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