If Nominal Wages and Prices Both Double, Then _____

question 29

Multiple Choice

If nominal wages and prices both double, then _____.

• A) the real wage will increase
• B) the level of employment will remain unchanged
• C) firms will hire more workers
• D) the supply of labour will decrease

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Definitions:

Production Goal

A specific target or objective related to the output of goods or services that a company aims to achieve.

Upper Management

The highest level of managers within an organization, responsible for making overarching decisions and setting strategic directions.

Costs of Production

The total expenses incurred in the process of producing or manufacturing goods and services, including materials, labor, and overhead.

Functionally Organized Firm

A company organized according to the functions each part of the organization performs, such as marketing, sales, and production.