Multiple Choice
Suppose workers' and firms' expectations of the price level and productivity are accurate.In this case,a reduction in productivity will cause which of the following?
A) a decrease in both the real wage and the natural rate of unemployment
B) an increase in both the real wage and the natural rate of unemployment
C) a decrease in the real wage and no change in the natural rate of unemployment
D) an increase in the real wage and a decrease in the natural rate of unemployment
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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