Assume That Expectations of the Price Level and Productivity Are

question 21

Multiple Choice

Assume that expectations of the price level and productivity are accurate. Now suppose that the economy experiences an increase in productivity. Which of the following will occur in the medium run?

• A) A decrease in unemployment.
• B) An increase in unemployment.
• C) An increase in employment.
• D) No change in unemployment.
• E) A decrease in employment.

---

Definitions:

Sclera

The white outer layer of the eyeball, providing protection and giving the eye its shape.

Lens

A transparent structure in the eye that focuses light rays onto the retina to form clear images.

Retina

A light-sensitive layer at the back of the eye that converts light into electrical signals sent to the brain.

Keratoconjunctivitis

An inflammation of the cornea and conjunctiva of the eye, often resulting from infection, dry eyes, or exposure to irritants.