Suppose Workers Expectations of Prices and Productivity Are Accurate

question 4

Multiple Choice

Suppose workers expectations of prices and productivity are accurate. For this economy, 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 to the natural rate of unemployment.
• D) An increase in the real wage and a decrease in the natural rate of unemployment.
• E) A decrease in the real wage and an increase in the natural rate of unemployment.

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Definitions:

Bear

A large mammal belonging to the Ursidae family, known for its omnivorous diet, thick fur, and powerful physique.

Producer

An organism, usually a plant or bacterium, that can produce its own food through photosynthesis or chemosynthesis, forming the basis of the food chain.

Ecosystem

A group of living beings interacting with the abiotic elements of their surrounding, functioning as a cohesive system.

Biological Community

An assemblage of different species of organisms living together in a particular area, interacting with each other within their environment.