For this question, assume that expectations of productivity are ...

[crazycityslicker]

For this question, assume that expectations of productivity are slow to adjust. An increase in productivity growth from 1 to 3 will cause
 
  A) an increase in the real wage of 1 and an increase in un.
  B) an increase in the real wage of 1 and a reduction in un.
  C) an increase in the real wage of 3 and an increase in un.
  D) an increase in the real wage of 3 and a reduction in un.

Question 2

Which of the following is a characteristic of bonds?
 
  A) pay zero nominal interest
  B) can be used for transactions
  C) are sold for a price that varies inversely with the interest rate
  D) all of the above
  E) none of the above

[Joc]

Answer to Question 1

D

Answer to Question 2

C

[crazycityslicker]

Thank you

[Joc]

No problemo