Suppose That the Economy of Wetland Shown in the Following

question 111

Short Answer

Suppose that the economy of Wetland shown in the following figure is in full-employment equilibrium and the present nominal wage is $800 per week
a)What is the real wage (in base year prices)?
b)Suppose that aggregate demand increases by $100.At the new equilibrium,what will be the new value of the real wage rate?
c)As a result of the change in b),suppose the nominal wage increases,causing aggregate supply to decrease by $100.At the new equilibrium,what will be the new real wage rate?
d)At the new equilibrium in c),what is the value of the nominal wage rate?

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Humanist

An individual who emphasizes the value and agency of human beings, individually and collectively, often focusing on human needs and concerns.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses through gradual exposure to the feared object or situation.

Exposure Techniques

Therapeutic methods used to treat fears and phobias by gradually exposing patients to the feared object or context without any danger.

Cognitive Therapies

A category of psychotherapeutic treatments that help patients understand the thoughts and feelings that influence behaviors.