For This Question,assume That Workers Expectations of the Price Level

question 55

Multiple Choice

For this question,assume that workers 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)no change in unemployment
• B)an increase in unemployment
• C)a reduction in unemployment
• D)no change in the natural level of output if the unemployment rate does not change
• E) none of the above

---

Definitions:

Dormant Commerce Clause

A principle that restricts states from enacting legislation that discriminates against or excessively burdens interstate commerce.

Importation

The act of bringing goods or services into one country from another country in order to sell them.

In-State Growers

Agricultural producers or farmers who operate within a specific state, often in the context of regulatory or marketing preferences.

Takings Clause

A provision in the Fifth Amendment of the U.S. Constitution that requires the government to provide fair compensation when it takes private property for public use.