Question

How may low inflation actually assist labor markets adjust towards equilibrium? O It increases the living standard of workers by diminishing their fixed debt. OIt forces more frequent renegotiation of labor contracts. O It allows for the gradual downward adjustment of real wages.

What is the one of the reasons low inflation may actually assist labor markets adjust towards equilibrium? Low inflation increases the living standard of workers by diminishing their fixed debt. Low inflation forces more frequent renegotiation of labor contracts. O Low inflation allows for the gradual downward adjustment of real wages.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

When inflation level lowers implies that overall price level decreases given nominal wages, real wages would rise and more workers would be willing to get employed hence increase supply of labour and adjust labor market towards equilibrium.

Add a comment
Know the answer?
Add Answer to:
How may low inflation actually assist labor markets adjust towards equilibrium? O It increases the living...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • China had special economic zones originally in places such as Hong Kong and Shenzhen set up...

    China had special economic zones originally in places such as Hong Kong and Shenzhen set up back in the 1980s. Why would the Chinese government support these areas with different rules like no tax on trade or different economic laws? To increase the number of programs where national taxes can be excised. To contribute to economic health and growth by keeping more money in government. To facilitate a healthy economic environment and grow international trade. In order for there to...

  • In order for there to be an accurate reflection of the aggregate economic indicators in a...

    In order for there to be an accurate reflection of the aggregate economic indicators in a model the equilibrium aggregate real GDP and the equilibrium aggregate price level needs to be considered in individual markets. only use long run curves. intersect. What is the one of the reasons low inflation may actually assist labor markets adjust towards equilibrium? Low inflation increases the living standard of workers by diminishing their fixed debt. Low inflation forces more frequent renegotiation of labor contracts....

  • The Campus Collective company, which creates unique apps for colleges, has recently lost three large university...

    The Campus Collective company, which creates unique apps for colleges, has recently lost three large university clients that made up 40% of its total revenue. This has hit the company hard and management finds it necessary to reduce staff or wages. The economy also appears to be headed toward a recession and gaining more clients will most likely be harder to accomplish. Because it is a smaller company everyone knows each other and knows there are tough choices ahead. Management...

  • CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in...

    CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...

  • I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this p...

    I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this paper and some conclusions and contributes of this paper. I need this for my Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS PLEASE !!!) Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT