Multiple Choice
The price misperception model predicts:
A) the price level will be countercyclical while in the data the price level is countercyclical.
B) the nominal quantity of money is procyclical and in the data money is weakly procyclical.
C) the real wage is procyclical and in the data the real wage is procyclical.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q26: If the nominal wage rises from €10
Q27: If the actual price level is above
Q28: The workers' perceived real wage rate is:<br>A)their
Q29: If the nominal wage rises from €10
Q30: In the current period a perceived increase
Q32: Real variables can only be affected by:<br>A)unperceived
Q33: While price misperceptions can cause an increase
Q34: Price misperception during a positive technology shock
Q35: Monetary policy can affect real variables in
Q36: If the nominal wage is €10 per