If Workers Successfully Demand Higher Wages, but Monetary Policy Is

question 15

Multiple Choice

If workers successfully demand higher wages, but monetary policy is not accommodative, then the unemployment rate will _____ in the short run and _____ in the long run.

• A) rise, rise
• B) rise, fall
• C) fall, rise
• D) fall, fall

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Definitions:

Relative Rank

The position or level of something or someone in relation to others based on a specific criterion or set of criteria.

Status

The relative social, professional, or other standing of someone or something within a group or society.

Complementary Skill

Abilities or expertise that, when combined with those of others, enhance teamwork and the achievement of shared objectives.

Cognitive Demands

Refers to the mental effort required to perform a task or understand information.