In the Short Run,one Reason Why We Do Not Define

question 36

Multiple Choice

In the short run,one reason why we do not define "full employment" as 0 percent unemployment is because

• A)Of the direct relationship between unemployment and inflation.
• B)The closer the economy gets to capacity output,the greater the risk of inflation.
• C)Of the vertical aggregate supply curve.
• D)0 percent unemployment is consistent with price stability.