If the Unemployment Rate Is Less Than the NAIRU

question 27

Multiple Choice

If the unemployment rate is less than the NAIRU,

• A)there is no pressure on the AS curve to shift.
• B)there is a recessionary output gap.
• C)demand forces will exert upward pressure on wages.
• D)the AS curve will shift downward.
• E)there will be downward pressure on wages.

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Definitions:

Human Rights

The fundamental rights and freedoms that every person is entitled to, regardless of nationality, sex, ethnicity, religion, or any other status, including rights to life, liberty, and the pursuit of happiness.

Margaret Mead

An American cultural anthropologist known for her studies and publications on the socialization of children and culture in the South Pacific and Southeast Asia.

Committed Citizens

Individuals who are actively engaged in civic activities or advocacy with a strong dedication to a cause or community.

Globalization

The process of increased interconnectedness and interdependence among countries, cultures, and economies, often driven by trade, technology, and the flow of information and people.