In the Short Run, If the Actual Rate of Inflation

Multiple Choice

In the short run, if the actual rate of inflation is lower than the expected rate, then:

A) Nominal wages will rise, profits will fall, and unemployment will rise
B) Nominal wages will fall, profits will rise, and unemployment will fall
C) Nominal wages will rise, profits will rise, and unemployment will fall
D) Nominal wages will fall, profits will fall, and unemployment will rise