For this question, assume that expectations of P and A are correct. Now suppose that there is a 1% increase in A. Given this information, which of the following will occur?
A) a 1% increase in the real wage and a reduction in the natural rate of unemployment
B) a 1% increase in the real wage and no change in the natural rate of unemployment
C) no change in the real wage and an increase in the natural rate of unemployment
D) no change in the real wage and a reduction in the natural rate of unemployment
B
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Which of the following is a CORRECT statement about markets for prohibited goods?
A) Penalizing sellers of an illegal good decreases supply and penalizing buyers decreases demand. B) Penalizing either buyers or sellers of an illegal good decreases the quantity bought. C) Taxing a good at a sufficiently high rate can achieve the same consumption level as prohibition. D) All of the above are correct statements.
The supply-side shocks of the 1970s shifted the aggregate supply curve inward
a. True b. False Indicate whether the statement is true or false
The minimum amount of reserves a bank is required to hold is known as
A. Total reserves. B. Required reserve ratio. C. Excess reserves. D. The money multiplier.
Which of the following statements is true?
A. When the forces of supply and demand determine for whom goods are produced in a society, an equitable distribution of income will naturally result. B. An external cost will occur when some of the benefits derived from production of some good or service are enjoyed by a third party. C. One of the roles of the United States' government is to transfer some income from the rich and the middle class to the poor. D. According to most economists' definition of competition, the American economy is very competitive.