Multiple Choice
Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.
-Refer to Pessimism.What happens to the expected price level and what's the result for wage bargaining?
A) The expected price level rises.Bargains are struck for higher wages.
B) The expected price level rises.Bargains are struck for lower wages.
C) The expected price level falls.Bargains are struck for higher wages.
D) The expected price level falls.Bargains are struck for lower wages.
Correct Answer:
Verified
Correct Answer:
Verified
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