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:

Human Resources

The department within an organization that deals with the hiring, management, and development of employees.

Demand

The desire and ability of consumers to purchase goods and services at a given price.

Markov Analysis

Forecast of a firm’s future human resource supplies, using transitional probability matrices reflecting historical or expected movements of employees across jobs.

What If

Refers to a method of questioning or analysis used to explore possibilities, predict outcomes, or understand scenarios hypothetically.