The natural rate of employment
a. will change with changes in the long run aggregate supply curve.
b. will be a level such that the expected real wage equals the actual real wage.
c. will be at a level where the actual and expected price levels are equal.
d. both a and c.
e. all of the above.
E
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To determine short-run equilibrium in the economy, we use an aggregate supply curve that is:
a. downward-sloping. b. vertical. c. upward-sloping. d. horizontal. e. parabolic.
Prices influence the distribution of income by making the distribution fairer
a. True b. False Indicate whether the statement is true or false
It is always the case that players in a prisoner's dilemma situation will choose the Nash Equilibrium
a. True b. False Indicate whether the statement is true or false
According to the Classical model, an excess supply of labor would drive up wages to a new equilibrium level and therefore unemployment would not persist.
Answer the following statement true (T) or false (F)