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.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Measuring The Cost Of Living

Section: Chapter Questions

Problem 3PA

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QUESTION 4 What condition(s) are necessary for disequilibrium unemployment to exist? O a. Wages are sticky and the aggregate demand for labour is greater than the aggregate supply O b. The aggregate demand for labour is greater than the aggregate supply O c. Wages are sticky and the aggregate supply of labour is greater than the aggregate demand O d. Wages to be sticky
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