Suppose workers' and firms' expectations of the price level and productivity are accurate. In this case, an increase in productivity will cause which of the following?
A) an increase in both the real wage and the natural rate of unemployment
B) a decrease in both the real wage and the natural rate of unemployment
C) an increase in the real wage and no change in the natural rate of unemployment
D) a decrease in the real wage and an increase in the natural rate of unemployment
E) none of the above
C
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Answer the following statement(s) true (T) or false (F)
1. According to the textbook application, the automobile industry and the state of California worked together to solve the state’s urban smog problem. 2. Title IV of the 1990 Clean Air Act Amendments uses tradeable allowances to control sulfur dioxide emissions. 3. Under the Clean Air Act, the major groups of air pollutants being controlled are natural pollutants, hazardous air pollutants, and greenhouse gases. 4. In the United States, seven criteria pollutants have been identified through criteria documents. 5. Among the criteria pollutants identified in the United States is carbon dioxide.
The symmetry principle in economics means that
A) all individuals must have similar outcomes. B) all similar individuals must be treated similarly. C) individuals must have opposite outcomes. D) similar individuals must have similar outcomes.
For most of the 19th century in the American West, there was
A. an abundance of labor relative to land. B. abundance of land relative to labor. C. an abundance of both labor and land. D. a scarcity of both labor and land.
When oligopolistic firms in an industry form a cartel, then it is most likely that
A) both industry output and prices will increase. B) both industry output and prices will decrease. C) industry output will increase while prices will decrease. D) industry output will decrease while prices will increase.