Suppose workers' and firms' expectations of the price level and productivity are accurate. In this case, a reduction in productivity will cause which of the following?
A) a decrease in both the real wage and the natural rate of unemployment
B) an increase in both the real wage and the natural rate of unemployment
C) a decrease in the real wage and no change in the natural rate of unemployment
D) an increase in the real wage and a decrease in the natural rate of unemployment
E) none of the above
C
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A statement that is often used to describe demand-pull inflation is ________.
A. "Too much money chasing too few goods." B. "A rising tide lifts all boats." C. "Money is easily earned, but not easily saved." D. "There is no such thing as a free lunch."
Why have poverty rates fallen for the elderly since 1960?
What will be an ideal response?
Which of the following refers to a natural monopoly?
a. A monopoly resulting from government control b. A monopoly resulting from economies of scale c. A monopoly resulting from output leadership d. A monopoly resulting from a large advertising budget e. A monopoly resulting from trade restrictions
Which of the following is most important if a country is going to achieve and sustain rapid economic growth?
What will be an ideal response?