If the Unemployment Rate Is Greater Than the NAIRU

question 36

Multiple Choice

If the unemployment rate is greater than the NAIRU,

• A)there will be upward pressure on wages.
• B)the AS curve will shift upward.
• C)there is a negative output gap.
• D)real national income is above potential GDP.
• E)there is an inflationary gap.

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Definitions:

Evolutionary Trend

A pattern or direction of evolution where a species undergoes gradual changes over time, often resulting in increased complexity or specialization.

Nervous Systems

Complex networks of nerves and cells that transmit signals between different parts of an organism's body to coordinate behavior.

Cerebral Areas

Regions within the brain, each responsible for various functions such as memory, speech, and decision-making.

Temporal Lobes

Region of the cerebrum that contains the auditory areas.