Examlex

Solved

If Nominal Wages Increase 7 Percent While the Price Level

question 110

True/False

If nominal wages increase 7 percent while the price level rises by 5 percent,real wages rise.


Definitions:

Marginal Product

The additional output produced as a result of adding one more unit of a particular input, keeping other inputs constant.

Average Product

The ratio of total product to the amount of input used, determined by dividing the overall output by the input quantity.

Average Product

The average amount of output produced per unit of a specific input, like labor or capital, over a certain period.

Related Questions