Assume That an Unemployed Person Expects Inflation to Be 4

question 33

Multiple Choice

Assume that an unemployed person expects inflation to be 4.5 percent.In reality, inflation turns out to be 2.9 percent.If wage expectations lag behind actual price changes:

• A)job offers below the reservation wage will decline, and the unemployment rate will rise.
• B)job offers above the reservation wage will rise, and the unemployment rate will fall.
• C)job offers above the reservation wage will decline, and the unemployment rate will rise.
• D)job offers above the reservation wage will decline, and the unemployment rate will fall.
• E)job offers below the reservation wage will increase, and the unemployment rate will fall.

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Definitions:

Indicators Of Performance

Quantitative or qualitative measurements used to evaluate and track the efficiency, effectiveness, or success of an individual, group, or organization's activities.

Self-Appraisals

An evaluation process where employees assess their own job performance, strengths, and areas for improvement.

Job-Related Feedback

Information provided to an employee about their performance or behaviors that directly pertain to their job duties and responsibilities.

Performance Measures

The ratings used to evaluate employee performance.