In the short run unemployment may fall below the natural rate of unemployment if ........

Finance Inflation Trends

In the short run unemployment may fall below the natural rate of unemployment if

Nominal wages have risen less than inflation

Nominal wages have risen at the same rate as inflation

Nominal wages have risen more than inflation

Nominal wages have risen less than unemployment

Unemployment can fall below the natural rate if the real wage falls because prices are growing faster than nominal wages.

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