If Nominal Wage Rates Are Contractually Determined and Cannot Change

question 82

Multiple Choice

If nominal wage rates are contractually determined and cannot change in the short run, then an unexpected increase in the inflation rate will:

• A)increase business profits and reduce the unemployment rate.
• B)reduce both business profits and the unemployment rate.
• C)reduce business profits and increase the unemployment rate.
• D)increase both business profits and the unemployment rate.
• E)cause no change in business profits or the unemployment rate

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Definitions:

Biological Forces

The genetic and physiological mechanisms that affect the behavior, health, and development of organisms.

Ambiguous Definitions

Statements or concepts that are open to more than one interpretation and can cause confusion due to their lack of precision.

Free Association

A therapeutic technique where patients are encouraged to verbalize any thoughts that come to mind, allowing for the exploration of subconscious thoughts and feelings.

Dream Analysis

A psychotherapeutic technique that interprets the symbolic meaning of dreams to uncover underlying thoughts and feelings.