15. For this question, assume that expectations of productivity are slow to adjust. Further assume that A had been increasing by 5% a year in the past. Now suppose that A only increases by 2% in period t. This slowdown in productivity growth will cause A. the PS relation to shift up more than the WS relation. B. the WS relation to shift up more than the PS relation. c. the natural rate of unemployment to fall. D. the real wage to fall.

15. For this question, assume that expectations of productivity are slow to adjust. Further assume that A had been increasing by 5% a year in the past. Now suppose that A only increases by 2% in period t. This slowdown in productivity growth will cause A. the PS relation to shift up more than the WS relation. B. the WS relation to shift up more than the PS relation. c. the natural rate of unemployment to fall. D. the real wage to fall.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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