In the Short Run, If the Actual Rate of Inflation

question 19

Multiple Choice

In the short run, if the actual rate of inflation falls lower than the expected rate, then

• A)profits will temporarily fall and unemployment will temporarily rise.
• B)profits will temporarily rise and unemployment will temporarily fall.
• C)nominal wages will rise, profits will rise, and unemployment will fall.
• D)nominal wages will fall, profits will fall, and unemployment will rise.

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Definitions:

Massachusetts Bay

An inlet of the Atlantic Ocean and a key location of early English settlements in North America, notably the Massachusetts Bay Colony founded in 1630.

Native Americans

The indigenous peoples of the Americas, encompassing a wide range of tribes, cultures, and languages existing prior to European colonization.

Servitude

Servitude is a condition in which an individual is legally bound to serve another person for a specified or indeterminate time, often with little to no personal freedom or compensation.

Emancipate

To free someone from legal, social, or political restrictions; commonly used in historical contexts to refer to the freeing of slaves.