If Productivity Growth Accelerates,but Workers Do Not Realize It ________

question 48

Multiple Choice

If productivity growth accelerates,but workers do not realize it ________.

• A)they will expect large wage hikes
• B)they will not expect large wage hikes
• C)the natural rate of unemployment will rise
• D)the number of discouraged workers will rise

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Definitions:

Efficient Market Hypothesis

The theory that it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information.

Weakly Efficient

A term referring to a form of market efficiency where all past trading information is fully reflected in stock prices, but future and private information may not be.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed, allowing investors access to a broad spectrum of investments.

Insiders

Individuals within a corporation who have access to private, non-public information which might influence the company's stock price.