The Long-Run Trend of Real Wages

question 164

Multiple Choice

The long-run trend of real wages

• A) cannot be determined from available data on nominal wages and the price level.
• B) has been downward because the price level has risen faster than nominal wages.
• C) has been upward.
• D) has been downward because labor's share of the domestic income has fallen.

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Definitions:

Normative Social Influence

Influence resulting from a person’s desire to gain approval or avoid disapproval.

Conformity

The process of aligning one's attitudes, beliefs, and actions with the norms, policies, or expectations of a group or society.

Mood Contagion

The phenomenon where emotional states are transferred from one person to another, often unconsciously.

Group Polarization

A social psychological phenomenon where discussions within a group lead to an exaggeration of the group's initial leanings, making their opinions more extreme.