Which of the following is likely to occur if the actual rate of inﬂation is lower than the expected rate of inﬂation?
A) Real wages in the economy will fall.
B) The level of output will increase.
C) Workers will negotiate higher nominal wage agreements.
D) Firms will reduce employment and hire fewer workers.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is likely to occur if the actual rate of inﬂation is lower than the expected rate of inﬂation?
A) Real wages in the economy will fall.
B) The level of output will increase.
C) Workers will negotiate higher nominal wage agreements.
D) Firms will reduce employment and hire fewer workers.

Which of the Following Is Likely to Occur If the Actual