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

question 52

Multiple Choice

For this question,assume that expectations of productivity are slow to adjust.Further assume that A had been increasing by 2% a year.Now suppose that A increases by 5% in period t.This increase in productivity growth will cause

• A)the real wage to rise and no change in the natural rate of unemployment.
• 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:

Security Interest

A legal claim or right granted by a debtor to a creditor over the debtor's property, serving as collateral for the repayment of a loan.

Property Interest

A legal right or claim to a property, including ownership rights, use rights, rents, or other benefits deriving from the property.

Collateral

Property or assets pledged as security for repayment of a loan, subject to seizure by the lender in case of default.

Legally Enforceable

A term describing an agreement or contract that is recognized by legal authorities and can be upheld in court.