Employers Are Likely to Be Able to Pass on the Cost

question 25

True/False

Employers are likely to be able to pass on the cost of a wage increase if they are in a noncompetitive product market.

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Definitions:

Net Capital Outflow

The difference between the domestic country's sale of assets to foreigners and the domestic purchases of foreign assets, over a given period of time.

Euros

The official currency of the eurozone, used by 19 of the 27 European Union member countries, represented by the symbol €.

Nominal Exchange Rate

The current market price at which one currency can be exchanged for another.

Real Exchange Rate

The rate at which two currencies can be exchanged for each other, adjusted for inflation, which represents the true purchasing power.