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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Definitions:

Negligence

The failure to take appropriate care in doing something, leading to damage or injury to another.

Worn Down Brakes

A condition of vehicle brakes where the brake pads or shoes have been used to the point of reduced effectiveness, posing safety risks.

Sue

The act of bringing a legal action against an individual, entity, or organization, seeking redress or enforcement of rights through a judicial process.

Reasonable Foreseeability Test

A test of whether a duty of care is owed, based on what a person should have anticipated would be the consequences of his action.