Suppose That the Nominal Wage,the Expected and Actual Price Levels,and

question 76

Multiple Choice

Suppose that the nominal wage,the expected and actual price levels,and the expected and actual inflation rates for a hypothetical economy in 2014 are presented in the following table. Given the data,we know that

• A) the actual real wage is less than the expected real wage.
• B) the unemployment rate will fall.
• C) firms will hire fewer workers than they planned.
• D) the unemployment rate will not change.

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