4. Suppose workers' and firms' expectations of the price level and productivity are accurate. In this case, an increase in productivity will cause (an increase/ a decrease/ no change) in real wage and (an increase/ a decrease/ no change) in the natural rate of unemployment.

4. Suppose workers' and firms' expectations of the price level and productivity are accurate. In this case, an increase in productivity will cause (an increase/ a decrease/ no change) in real wage and (an increase/ a decrease/ no change) in the natural rate of unemployment.

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 6SCQ: Is the increase in labor force participation rates among women better thought of as causing an...

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Question

4. Suppose workers' and firms' expectations of the price
level and productivity are accurate. In this case, an
(an
increase/ a decrease/ no change) in real wage and
(an increase/ a decrease/ no change) in
increase in productivity will cause
the natural rate of unemployment.

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