For This Question,assume That Expectations of Productivity Are Slow to Adjust.Further

question 27

Multiple Choice

For this question,assume that expectations of productivity are slow to adjust.Further assume that A had been increasing by 6% a year.Now suppose that A only increases by 2% in period t.This slowdown in productivity growth will cause

• A)the PS relation to shift up more than the WS relation.
• B)the WS relation to shift up more than the PS relation.
• C)the natural rate of unemployment to fall.
• D)the real wage to fall.

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Definitions:

Punitive Damages

Monetary compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses, intended to punish the defendant for particularly egregious behavior.

Deter

To discourage or prevent from acting, typically through the threat of negative consequences.

Shoes

Footwear items designed to protect and comfort the human foot while also providing fashion and style.

Damages

Compensation or monetary awards given to a party in a lawsuit for losses or injuries suffered as a result of another party's actions or negligence.