The full indexation of wages and prices
A) is widespread in most industrial countries
B) would ensure that each year's inflation rate could always be correctly anticipated
C) would cause some real wage rigidities
D) would greatly help an economy to adjust back to full employment after a supply shock
E) would eliminate all lags between measuring price changes and making wage payments
Correct Answer:
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Q19: Which of the following statements is FALSE?
A)homeowners
Q20: If you had $2,000 in a savings
Q21: In countries where inflation is high and
Q22: If you lost $1,000 in cash in
Q23: If your parents promised to give you
Q25: The real return on a bond that
Q26: An unanticipated increase in inflation is a
Q27: The real return on a ten-year Treasury
Q28: At age 18, you decided to bury
Q29: Wage indexation
A)increases nominal wages periodically in accordance
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