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For This Question,assume That Expectations of Productivity Are Slow to Adjust.An

Question 45

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For this question,assume that expectations of productivity are slow to adjust.An increase in productivity growth from 1% to 3% will cause


A) an increase in the real wage of 1% and an increase in un.
B) an increase in the real wage of 1% and a reduction in un.
C) an increase in the real wage of 3% and an increase in un.
D) an increase in the real wage of 3% and a reduction in un.

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