Suppose the NAIRU in April, 2010 Is 7

question 17

Multiple Choice

Suppose the NAIRU in April, 2010 is 7.2 percent. If the actual unemployment rate is 8.1 percent, then

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

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Definitions:

Superego

In psychoanalytic theory, the part of the personality that represents the internalized ideals and provides standards for judgment.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.

Preconscious

The part of the mind that contains thoughts, feelings, and memories not currently in consciousness but can be easily accessed.

Id

A component of Sigmund Freud's psychoanalytic theory, representing the unconscious part of the psyche that operates on the pleasure principle and seeks immediate gratification.