If actual inflation is less than expected inflation,actual real wages will be ________ expected real wages and unemployment will ________.

Question

Quizplus · Accepted Answer

If actual inflation is less than expected inflation, the real wages will be greater than expected because the purchasing power of wages is higher than anticipated. This can lead to higher unemployment as firms may reduce hiring due to higher labor costs.

If Actual Inflation Is Less Than Expected Inflation,actual Real Wages