Suppose the NAIRU in April,2015 Is 7

question 105

Multiple Choice

Suppose the NAIRU in April,2015 is 7.2%.If the actual unemployment rate is 8.1%,then

• A)there is an inflationary gap.
• B)0.9 percentage points are due to cyclical factors.
• C)the sum of frictional and structural unemployment is greater than the NAIRU.
• D)the NAIRU has increased by 0.9 percentage points.
• E)cyclical unemployment is 8.1%.

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