If actual inflation is higher than expected inflation, the: a) actual real wage is greater than...
Question:
If actual inflation is higher than expected inflation, the:
a) actual real wage is greater than the expected real wage: unemployment falls.
b) actual real wage is less than the expected real wage: unemployment falls.
c) actual real wage is greater than the expected real wage: unemployment rises.
d) actual real wage is less than the expected real wage: unemployment rises.
Inflation:
The stage where prices of goods and services rise due to excess supply of money in the economy or maybe because of other reasons is called inflation. Inflation increases the value of goods and services in the economy.
Answer and Explanation: 1
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View this answerThe correct option is b) actual real wage is less than the expected real wage: unemployment falls
It is correct because the Philip curve has defined...
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What Is Inflation Rate? - Definition & Formula
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Chapter 4 / Lesson 16
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Learn about the inflation rate. Discover the causes of inflation and how to calculate it. Understand how to use the inflation rate formula through examples.
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