The Lowest Level of Unemployment Compatible with Price Stability

question 37

Multiple Choice

The lowest level of unemployment compatible with price stability

• A)Is referred to as full employment.
• B)Is estimated at between 0 and 2 percent unemployment.
• C)Allows for some cyclical unemployment.
• D)Is equal to the natural rate of unemployment plus the inflation rate.

---

Definitions:

Fair Value

The amount one would get for selling an asset or the cost to transfer a liability in a regulated exchange among market players on the date of valuation.

Impairment Loss

A recognized reduction in the recoverable amount of a fixed asset or goodwill, indicating that it exceeds its recoverable amount.

Deferred Income Taxes

The accounting concept that recognizes the tax effect of transactions in different periods than when the transactions actually occur.

Effective Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing the total tax paid by the taxable income.