For this question, assume that firms' of productivity are ...

[Jramos095]

For this question, assume that firms' of productivity are accurate while workers' expectations of productivity adjust slowly over time. In this case, an increase in productivity will cause which of the following?
 
  A) an increase in both the real wage and the natural rate of unemployment
  B) a decrease in both the real wage and the natural rate of unemployment
  C) an increase in the real wage and a reduction in the natural rate of unemployment
  D) a decrease in the real wage and an increase in the natural rate of unemployment
  E) none of the above

Question 2

Inventory investment refers to
 
  A) the difference between production and sales in a given year.
  B) fixed investment.
  C) nonresidential investment.
  D) the purchase by firms of new machines.

[ebonylittles]

Answer to Question 1

C

Answer to Question 2

A

[Jramos095]

TYSM

[diana chang]

Excellent