When Workers and Employers Correctly Anticipate the Rate of Inflation

question 260

Multiple Choice

When workers and employers correctly anticipate the rate of inflation

• A)there will be no unemployment.
• B)there will be only involuntary unemployment.
• C)unemployment will be at the natural rate.
• D)workers will underestimate the real wage.

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Definitions:

PDQ Stock

is not a widely known key term and might refer to a specific stock symbol or an abbreviation within a particular context. Assuming it's not widely recognized, the answer would be NO.

Expected Return

The return an investor believes is most likely on an investment—that is, the investor understands that the actual return may be somewhat different in certain investments like stocks. The mean of the probability distribution of returns.

Selling Price

The amount of money for which a product or service is sold to customers.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in cash or as shares.