Question

1a. Using the available data suggests that on averages wages change about

(a) once every 3 months

(b) once a month

(c) once every two years

(d) once a year

1b. The data also indicate that wages tend to be downward rigid. This means that

(a) wage increases are infrequent

(b) wages adjust slowly in both directions

(c) people are rigid when reporting wages

(d) wage declines are infrequent

1c. In the U.S., the pace of the economic recovery appears to be _______________ and the number of coronavirus cases is ______________.

(a) speeding up, increasing

(b) speeding up, falling

(c) slowing, increasing

(d) slowing, falling

Answer 1

1)a.

D). Once a year.

While using wages, employment, hours data to estimate household income growth, the real median household income growth has been slowing in recent years. If the slowdown in real wages growth persists so it will slow household income growth.

1)b.

C). People are rigid when reporting wages.

Wages are said to be downward rigid, means that they can move up easily but they are downward only with difficulties.

1)c.

C). Slowing, increasing.

As the number of cases increases of Corona virus it will directly effect the economy and it will become a threat to the growth for an economy.