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As the proportion of labour contracts that index wages to prices declines, we would expect that: a. an increase in the unemployment rate will now

As the proportion of labour contracts that index wages to prices declines, we would expect that: a. an increase in the unemployment rate will now have a larger effect on inflation. b. nominal wages will become more sensitive to changes in unemployment. c. the natural rate of unemployment will increase. d. an increase in the unemployment rate will now have a smaller effect on inflation. e. the natural rate of unemployment will decrease

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