Even If Expectations of Inflation Are Rational,sluggish Adjustment of Wages

question 73

True/False

Even if expectations of inflation are rational,sluggish adjustment of wages and prices will still create a short-run trade-off between inflation and unemployment.

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Definitions:

Lien

A legal right or claim against a property as security for the payment of a debt or obligation.

National Labor Relations Act

A foundational statute in United States labor law that protects the rights of employees to organize and to bargain collectively with their employers.

Private-Sector Employees

Individuals who work for businesses or organizations that are not part of the government.

Immigration Reform and Control Act

A U.S. federal law enacted in 1986 aimed at addressing illegal immigration, including provisions for sanctions against employers who hire illegal immigrants and legalizing certain immigrants.