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Roar Roar
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6 years ago
Suppose workers' and firms' expectations of the price level and productivity are accurate. In this case, a reduction in productivity will cause which of the following?
A) a decrease in both the real wage and the natural rate of unemployment.
B) an increase in both the real wage and the natural rate of unemployment.
C) a decrease in the real wage and no change in the natural rate of unemployment.
D) an increase in the real wage and a decrease in the natural rate of unemployment.
E) none of the above
Textbook 
Macroeconomics

Macroeconomics


Edition: 6th
Authors:
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vonCOLLINZOvonCOLLINZO
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Roar Author
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Brilliant ツ
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Smart ... Thanks!
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