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If the Actual Rate of Inflation Exceeds the Expected Rate

question 192

True/False

If the actual rate of inflation exceeds the expected rate of inflation,the actual real wage is greater than the expected real wage and unemployment falls.


Definitions:

Equilibrium Price

The equilibrium price in the market where the supply of goods matches the demand for goods.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity demanded at the market price.

French Fries

A popular fast food made by cutting potatoes into strips and deep-frying them until they are crispy.

Hamburger Ingredients

The various components required to make a hamburger, such as ground meat, lettuce, tomato, buns, and condiments.

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