15. For this question, assume that expectations of productivity are slow to adjust. Further assume that A had been increasing by 5% a year in the past. Now suppose that A only increases by 2% in period t. This slowdown in productivity growth will cause A. the PS relation to shift up more than the WS relation. B. the WS relation to shift up more than the PS relation. c. the natural rate of unemployment to fall. D. the real wage to fall.

15. For this question, assume that expectations of productivity are slow to adjust. Further assume that A had been increasing by 5% a year in the past. Now suppose that A only increases by 2% in period t. This slowdown in productivity growth will cause A. the PS relation to shift up more than the WS relation. B. the WS relation to shift up more than the PS relation. c. the natural rate of unemployment to fall. D. the real wage to fall.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 41CTQ: Unemployment rates have been higher in many European countries in recent decades than in the United...

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