If Workers Realize That an Increase in Nominal Wage Rates

question 18

Multiple Choice

If workers realize that an increase in nominal wage rates does not necessarily constitute a rise in real wages, then we would expect:

• A)an increase in employment.
• B)a decrease in employment.
• C)a downward movement along the Philips curve.
• D)a rightward shift of the Phillips curve.
• E)a leftward shift of the Phillips curve.

---

Definitions:

Public Concern

Issues that generate a significant level of interest, worry, or debate among the general public, often influencing social attitudes, policy making, and media coverage.

Sensory Adaptation

A change over time in the responsiveness of the sensory system to a constant stimulus, often leading to a decrease in sensitivity to that stimulus.

Prolonged Stimulation

Continuous or extended exposure to a stimulus over a considerable period of time.

Neurotransmitter

Chemical messengers that transmit signals across a chemical synapse, from one neuron (nerve cell) to another 'target' neuron, muscle cell, or gland cell.