If actual inflation is less than expected inflation what is the relationship

If actual inflation is less than expected inflation

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74) If actual inflation is less than expected inflation, what is the relationship between the actual realwage and the expected real wage?A) The actual real wage is lower than the expected real wage.B) The actual real wage is equal to the expected real wage.C) The actual real wage is higher than the expected real wage.D) The relationship between the actual real wage and the expected real wage cannot bepredicted.Answer: C74)Diff: 1Page Ref: 961-962/587-588Topic: Expectations of InflationLearning Outcome: Macro 13: Discuss the key measures, theories, and effects of inflation and deflationAACSB: Reflective Thinking20
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75) The actual real wage is lower than the expected real wage if75)Diff: 1Page Ref: 961-962/587-588Topic: Expectations of InflationLearning Outcome: Macro 13: Discuss the key measures, theories, and effects of inflation and deflationAACSB: Reflective Thinking76) According to economists Robert Lucas and Thomas Sargent, the apparent short-run trade-offbetween unemployment and inflation in the 1950s and 1960s was the result ofDiff: 2Page Ref: 962-963/588-589Topic: Rational ExpectationsLearning Outcome: Macro 17: Discuss the fundamentals of key macroeconomic theoriesAACSB: Reflective Thinking77) If rational workers and firms know that the Federal Reserve is following a contractionarymonetary policy, they will expect inflation to ________ and will adjust wages so that the real wage________.77)Diff: 2Page Ref: 962-963/588-589Topic: Rational ExpectationsLearning Outcome: Macro 17: Discuss the fundamentals of key macroeconomic theoriesAACSB: Reflective Thinking
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