Select the appropriate signs to complete the equation for inflation, taking inflationary expectations into account:
Inflation rate = percent increase in nominal wages (rate of increase in labor productivity) (expected inflation rate)
Suppose that nominal wages increase by 5%, labor productivity increases by 4%, and expected inflation is 3%. What is the actual inflation rate? %
In the previous step, nominal wages increased by 5%, labor productivity increased by 4%, and expected inflation was 3%, leading to an actual inflation rate of 4%. If expected inflation increases to 5%, actual inflation %.