Homework Help is Here – Start Your Trial Now!
Business
Economics
Analyze the graph below, showing data for the evolution of the minimum wage in the United States. Which of the following is correct? Minimum Wage (5) 16 14 12 10 80 A 2- 0 1990 Real(2010) Year Nominal

Analyze the graph below, showing data for the evolution of the minimum wage in the United States. Which of the following is correct? Minimum Wage (5) 16 14 12 10 80 A 2- 0 1990 Real(2010) Year Nominal

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter4: Labor And Financial Markets
Section: Chapter Questions
Problem 29P: Predict how each of the following events will raise or lower the equilibrium wage and quantity of...
See similar textbooks
icon
Related questions
Question

i need both answer  i will 10 upvotes

Consider a person borrowing money at a 9% annual interest, in a non-indexed contract. If the inflation for that year is 5%, which of the following sentences is correct? The lender collects 9% in real annual interest If the contract were indexed, the borrower would end up paying 4% in real annual interest The borrower ends up paying 14% in real annual interest Because the contract is not indexed, the borrower only pays 4% in real annual interest
Transcribed Image Text:Consider a person borrowing money at a 9% annual interest, in a non-indexed contract. If the inflation for that year is 5%, which of the following sentences is correct? The lender collects 9% in real annual interest If the contract were indexed, the borrower would end up paying 4% in real annual interest The borrower ends up paying 14% in real annual interest Because the contract is not indexed, the borrower only pays 4% in real annual interest
Analyze the graph below, showing data for the evolution of the minimum wage in the United States. Which of the following is correct? Minimum Wage (3) 16 14 12- 10 8- 6 4- 2- 0 1 Real(2010) Nominal The real wage decline after 1985 and the nominal wage increase for the same period indicates that, although the legislation increased the minimum wage, the inflation rose more than proportionally, generating a decrease in the standards of living for minimum wage earners The real wage decline after 1985 and the nominal wage increase for the same period indicates that, although the legislation increased the minimum wage, the inflation rose more than proportionally, generating an increase in the standards of living for minimum wage earners From the beginning of the series to 1970, nominal wage was constant and real wages were decreasing. indicating that that was a deflationary period for the United States From 1980 to 1985, the US saw a rise in nominal wages with a more than proportional rise in inflation
Transcribed Image Text:Analyze the graph below, showing data for the evolution of the minimum wage in the United States. Which of the following is correct? Minimum Wage (3) 16 14 12- 10 8- 6 4- 2- 0 1 Real(2010) Nominal The real wage decline after 1985 and the nominal wage increase for the same period indicates that, although the legislation increased the minimum wage, the inflation rose more than proportionally, generating a decrease in the standards of living for minimum wage earners The real wage decline after 1985 and the nominal wage increase for the same period indicates that, although the legislation increased the minimum wage, the inflation rose more than proportionally, generating an increase in the standards of living for minimum wage earners From the beginning of the series to 1970, nominal wage was constant and real wages were decreasing. indicating that that was a deflationary period for the United States From 1980 to 1985, the US saw a rise in nominal wages with a more than proportional rise in inflation
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Total Surplus
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
SEE MORE TEXTBOOKS