51) Gretchen expects the price level to rise from 104 this year to 108 next year, and she is able to incorporate these expectations into her wage contract. If the price level rises to 106 next year instead of 108, which of the following will occur? A) Gretchen's real wage will be unchanged. B) Gretchen's real wage will fall C) Gretchen's real wage will rise. D) Gretchen's real wage may rise or fall, depending on the unemployment rate

52) The key to understanding the short-run trade-off behind the Phillips curve is that an increase in inflation will decrease unemployment if the inflation is by both workers and firms. B) expected C) perfectly predicted D) ignored

53) Employees at the hospital have negotiated a 3 percent increase in wages for the next year, based on their inflation expectations. If inflation is actually 5 percent over the next year, which of the following will occur? A) Unemployment of hospital employees will rise. B) Real wages for hospital employees will fall. C) Inflation will be 3 percent the following year D) The increase in inflation is expected.