When workers and employers correctly anticipate an increase in inflation caused by an increase in aggregate demand,
A)workers will overestimate the real wage rate.
B)unemployment will be at the natural rate.
C)workers will underestimate the real wage rate.
D)there will be no unemployment.

Question

Quizplus · Accepted Answer

The Answer of When workers and employers correctly anticipate an increase in inflation caused by an increase in aggregate demand,
A)workers will overestimate the real wage rate.
B)unemployment will be at the natural rate.
C)workers will underestimate the real wage rate.
D)there will be no unemployment.

When Workers and Employers Correctly Anticipate an Increase in Inflation