If Workers Realize That an Increase in Nominal Wage Rates

question 18

Multiple Choice

If workers realize that an increase in nominal wage rates does not necessarily constitute a rise in real wages, then we would expect:

• A)an increase in employment.
• B)a decrease in employment.
• C)a downward movement along the Philips curve.
• D)a rightward shift of the Phillips curve.
• E)a leftward shift of the Phillips curve.

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Definitions:

Budgeted Cash Receipts

An estimate of all cash inflows a company expects to receive during a particular period based on expected sales or other income sources.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.

Cost Of Goods Sold

The total of all costs used to create a product or service, which has been sold.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of materials and labor but not distribution or sales costs.