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Question: 1 according to the quotrational expectationsquot school of thought in...

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1. According to the "rational expectations" school of thought in macroeconomics, the short-run Phillips curve is ________ in face of unanticipated changes in monetary policy.

a. negatively sloped

b. vertical

c. positively sloped

d. horizontal

2. If actual inflation is less than expected inflation, what is the relationship between the actual real wage and the expected real wage?

a. The actual real wage is equal to the expected real wage.

b. The actual real wage is lower than the expected real wage.

c. The actual real wage is higher than the expected real wage.

d. The relationship between the actual real wage and the expected real wage cannot be predicted.

3. The actual real wage is lower than the expected real wage if

a. expected inflation is less than actual inflation.

b. actual inflation is less than expected inflation.

c. actual unemployment is less than expected unemployment.

d. actual unemployment is less than actual inflation.

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