Which of the Following Comparisons of Wage Trends for 1953

question 42

Multiple Choice

Which of the following comparisons of wage trends for 1953 to 1973 and 1973 to 1993 is accurate?

• A) Wages were more equitable for women and minorities in the first period than in the second.
• B) Wage gains were typically eaten up by inflation in the first half.
• C) Nominal wages gradually sunk in the first half and rose in the second, but real wages behaved in the opposite way.
• D) Wages increased significantly in the first period but stagnated in the second.

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Definitions:

Business Investment

Expenditures made by businesses to purchase capital goods or services intended to increase their productive capacity or efficiency.

Financial Instruments

Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial Markets

Platforms or systems that facilitate the buying, selling, and trading of financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand.

Money Markets

Financial markets for short-term borrowing and lending, dealing with assets that mature in less than one year.