The Kennedy-Johnson Guidelines Specified That the Rate of Increase of Wage

question 36

Multiple Choice

The Kennedy-Johnson guidelines specified that the rate of increase of wage rates,including fringe benefits,for a particular industry should equal the

• A) rate of productivity increase in that industry.
• B) rate of increase in the general price level.
• C) trend rate of overall productivity increase.
• D) rate of wage increase in the countries that are our major trading partners.
• E) increase in steel and auto industries' wages.

---

Definitions:

Consumption and Investment

Elements of economic activity where consumption represents spending by households on goods and services, while investment refers to spending on capital goods that will be used for future production.

Macroeconomic Equilibrium

A state in which aggregate supply equals aggregate demand in an economy, leading to a stable price level and full employment.

Aggregate Production

The total output of goods and services produced by an economy over a specified period.

Aggregate Production

The total output of goods and services produced by an economy over a given period.