According to rational expectations, if workers and firms forecast inflation accurately, a. the real wage will not

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According to rational expectations, if workers and firms forecast inflation accurately,

a. the real wage will not decline as the price level rises.

b. workers will not lose from inflation, and firms will not gain.

c. the aggregate supply curve will be vertical.

d. all of the above are correct.

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Exploring Macroeconomics

ISBN: 9781285859446

7th Edition

Authors: Robert L. Sexton

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Question Posted: Nov 01, 2024 08:00 AM

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According to rational expectations, if workers and firms forecast inflation accurately, a. the real wage will not

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Exploring Macroeconomics

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