4) Inflation will reduce workers' real wage and so decrease the number of available workers. This outcome is desirable when demand for workers declines and the worker are reluctant to have a cut in their nominal wage. demand for workers increases and the workers are reluctant to have a cut in their nominal wage. demand for workers declines and the workers are willing to have a cut in their nominal wage. demand for workers increases and the workers are willing to have a cut in their nominal wage.

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