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Question: 20 suppose a worker receives a 3 pay raise for...

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20. Suppose a worker receives a 3% pay raise for the coming year, under which of the following will the purchasing power of the workers wage rise? a. The rate of inflation in the coming year is below 3%. b. The rate of inflation in the coming year is 390. C. The rate of inflation in the coming year is above 390. d. All of these are correct. 21. Does the stabilization policy conducted by the government work? No, output and the price level were more stable after World War II than prior to World War II a. b. No, output and the price level were more stable prior to World War II than after World War II. Yes, output and the price level were more stable prior to World War II than after World War II c. d. Yes, output and the price level were more stable after World War II than prior to World War II. 22. In comparison of high inflation and high deflation, which one would be worrisome for policymakers? a. neither b. high deflation c. both d. high inflation 23. The value of intermediate goods is not included in the calculation of GDP to avoid the problem of a. inflation. b. double counting c. depreciation. d. deflation.

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