Multiple Choice
Suppose workers expectations of prices and productivity are accurate. For this economy, 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 to the natural rate of unemployment.
D) An increase in the real wage and a decrease in the natural rate of unemployment.
E) A decrease in the real wage and an increase in the natural rate of unemployment.
Correct Answer:
Verified
Correct Answer:
Verified
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