Suppose workers' and firms' expectations of the price level and productivity are accurate.In this case,an increase in productivity will cause which of the following?
A) an increase in both the real wage and the natural rate of unemployment
B) a decrease in both the real wage and the natural rate of unemployment
C) an increase in the real wage and no change in the natural rate of unemployment
D) a decrease in the real wage and an increase in the natural rate of unemployment
E) none of the above
Correct Answer:
Verified
Q2: Assume an economy experiences,for a given period,a
Q3: The evidence suggests that recent technological change
A)permanently
Q4: An increase in productivity will cause which
Q5: Because of labor hoarding,an increase in output
Q6: When the production function is represented by
Q7: Which of the following statements about the
Q8: Some believe that technological progress leads to
Q9: Suppose an economy experiences an increase in
Q10: For this question,assume productivity has been increasing
Q11: The empirical evidence suggests that periods of
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