In the Fooling Model,real Wages

question 14

Multiple Choice

In the fooling model,real wages

• A)are countercyclical.
• B)are procyclical.
• C)are constant.
• D)show no clear cyclical pattern.

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Definitions:

Assembly Method

A process in manufacturing where parts are put together to make a final product.

Marginal-Utility-To-Price Ratio

The comparison of the additional satisfaction obtained from consuming one more unit of a good to its cost.

Marginal Utility

The incremental pleasure or value received from consuming one more unit of a good or service.

Marginal Utility Schedules

Tables or graphs that show the relationship between the quantity of a good consumed and the utility (satisfaction) that is gained from each additional unit.