Suppose Economists Were Able to Measure Frictional Unemployment as 3%,cyclical

question 31

Multiple Choice

Suppose economists were able to measure frictional unemployment as 3%,cyclical unemployment as 2%,and structural unemployment as 4%.Then we would know that

• A)Y is below Y* and there is downward pressure on wages.
• B)Y is below Y* and there is upward pressure on wages.
• C)Y is equal to Y* and there is no pressure on wages.
• D)Y is above Y* and there is downward pressure on wages.
• E)Y is above Y* and there is upward pressure on wages.

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Definitions:

C4 Pathway

A photosynthetic process in some plants that captures carbon dioxide in a four-carbon compound, allowing them to thrive in high temperatures and light intensities.

Photosynthesis Efficiency

The ability of plants to convert light energy from the sun into chemical energy stored in organic compounds with minimal energy loss.

Hot Dry Climates

Climates characterized by low humidity and high temperatures, often found in desert regions and areas with a long dry season.

CAM Plant

Plant that carries out crassulacean acid metabolism; carbon is initially fixed into organic acids at night in the reaction of CO2 and phosphoenolpyruvate, catalyzed by PEP carboxylase; during the day the acids break down to yield CO2, which enters the Calvin cycle. Compare with C3 plant and C4 plant.