An Unanticipated Increase in the Level of Prices in the Goods

Multiple Choice

An unanticipated increase in the level of prices in the goods and services market, which results in a temporary reduction in real wage rates, will

A) decrease the natural rate of unemployment.
B) increase the natural rate of unemployment.
C) result in an actual rate of unemployment that is less than the natural rate of unemployment.
D) result in an actual rate of unemployment that is greater than the natural rate of unemployment.