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1.As the proportion of labour contracts that index wages to prices increases, we expect that: a.The natural rate of unemployment will decrease. b.A decrease in the unemployment rate will now have a larger effect on ination. c.Nominal wages will become less sensitive to changes in unemployment. d.An increase in the unemployment rate will now have a larger effect on ination. e.The natural rate of unemployment will increase. 2.Compute the real interest rate using the approximation formula of the Fisher equation when the nominal interest rate is equal to 0% and expected ination is equal to 3%, then The real interest rate is equal to -1%. The real interest rate is equal to 1%. The real interest rate is equal to 3%. The real interest rate is equal to 5%. The real interest rate is equal to -3%