Solved

For This Question,assume That the Economy Is Initially Operating at the Natural

Question 21

Multiple Choice

For this question,assume that the economy is initially operating at the natural level of output.An increase in consumer confidence will cause


A) a reduction in the real wage in the medium run.
B) an increase in the real wage in the medium run.
C) no change in the real wage in the medium run.
D) ambiguous effects on the real wage in the medium run.

Correct Answer:

verifed

Verified

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

Related Questions

Q16: The change in the unemployment rate is

Q17: In the IS-LM-PC model,LM curve is<br>A)flat.<br>B)upward sloping.<br>C)downward

Q18: From 1970 to the mid-1990s,the relative price

Q19: For this question,assume that the economy is

Q20: For this question,assume that the economy is

Q22: The Phillips curve shows that when the

Q23: The price setting relation is<br>A)horizontal.<br>B)upward sloping.<br>C)downward sloping.<br>D)vertical.

Q24: As fiscal consolidation takes place,the central bank

Q25: The zero lower bound refers to the

Q26: If the output is too high,to achieve