When workers and employers correctly anticipate the rate of inflation
A) there will be no unemployment.
B) there will be only involuntary unemployment.
C) unemployment will be at the natural rate.
D) workers will underestimate the real wage.
C
You might also like to view...
A firm's markup:
A. is the amount by which its price exceeds its marginal cost, expressed as a percentage of its price. B. is the amount by which its marginal cost exceeds its average cost. C. is the amount by which its average cost exceeds its marginal cost. D. is the value of its profit.
The winner's curse is the tendency in certain types of auctions for:
A. unsophisticated bidders to overpay whenever they win. B. winners to be unable to win a subsequent auction. C. winners to regret spending their money on the auctioned item. D. the owner of the item up for auction to unfairly drive up auction prices.
Means tested government programs:
A. require recipients to undergo skills testing for benefits. B. define eligibility for benefits based on recipients' income. C. are as effective as unconditional cash transfers. D. are rarely used in the US.
The money multiplier is potential because
a. the legal reserve requirement is never precisely set b. banks might not be able to lend out all of their excess reserves c. banks always lend all of their excess reserves d. banks are prohibited from lending out all of their excess reserves e. banks can only lend out an amount equal to their required reserves