If an Increase in Inflation Is Expected, Which of the Following

question 97

Multiple Choice

If an increase in inflation is expected, which of the following events is the least likely to occur?

• A)Unemployment will remain constant.
• B)Nominal GDP will increase.
• C)Nominal wage rates will increase at the same rate as expected inflation.
• D)A worker's reservation wage will rise at the same rate as expected inflation.
• E)Nominal wage rates will remain constant.

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Definitions:

Performance Management Activities

Various actions taken by an organization to plan, monitor, and review an employee's work objectives and overall contribution to the organization.

Training/Development

The educational process of enhancing an individual's skills, knowledge, and competencies for career advancement or performance improvement.

Performance Management Review

A systematic evaluation process by which employee performance is assessed and feedback is given to promote development and improvement.

Annually

Referring to events, measurements, or occurrences that take place once every year.