When countries specialize in what they do efficiently and trade, the material wealth of nations

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

A) actual unemployment is less than actual inflation. B) expected inflation is less than actual inflation. C) actual inflation is less than expected inflation. D) actual unemployment is less than expected unemployment.

If during the past decade the average rate of monetary growth has been 5% and the average inflation rate has been 5%, everything else held constant, when the Federal Reserve announces that the new rate of monetary growth will be 10%, the adaptive

expectation forecast of the inflation rate is A) 5%. B) between 5 and 10%. C) 10%. D) more than 10%.