If the NAIRU was 10% and the actual unemployment rate was 9%, we would conclude that O A. the expectational and output-gap effects would both likely mean no change in nominal wages. O B. the sticky wages would mean no decrease in nominal wages. OC. there would be no output-gap effect because unemployment was very high. OD. the unemployment rate would have to fall further before the expectational effect would influence wage changes. O E. the output-gap effect would work to increase nominal wages for workers.

If the NAIRU was 10% and the actual unemployment rate was 9%, we would conclude that O A. the expectational and output-gap effects would both likely mean no change in nominal wages. O B. the sticky wages would mean no decrease in nominal wages. OC. there would be no output-gap effect because unemployment was very high. OD. the unemployment rate would have to fall further before the expectational effect would influence wage changes. O E. the output-gap effect would work to increase nominal wages for workers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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