When workers and employers correctly anticipate the rate of inflation
A. unemployment will be at the natural rate.
B. there will be only underemployment.
C. there will be no unemployment.
D. workers will underestimate the real wage.
Answer: A
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A) A B) B C) G D) H E) none of the above
Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect the
What will be an ideal response?
If the price level is fixed, changes in nominal income and changes in real income ______.
a. have an inverse relationship because there are no changes in aggregate supply. b. remain equal because there is no rate of inflation to account for. c. remain equal because aggregate income will neither rise nor fall. d. have an inverse relationship because full employment has been reached.
Mergers may result in
A) anticompetitive behavior. B) more efficient production. C) fewer firms in a market. D) All of the above.