Suppose That the Natural Rate of Unemployment for the Economy

question 22

Essay

Suppose that the natural rate of unemployment for the economy is 6 percent and the economy is currently experiencing a 9 percent unemployment rate. Explain what will likely happen to wages and prices as the economy adjusts to the long- run equilibrium.

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Definitions:

Manifest Functions

The recognized and intended consequences of any social pattern, process, or structure.

Expressive Functions

Activities and roles focused on the emotional or relational aspects of a group or family, emphasizing support, communication, and emotional bonding.

Instrumental Functions

The practical and task-oriented activities or roles performed by an individual or within an entity, aimed at achieving specific objectives.

Conflict Perspective

A sociological approach that views social and economic institutions as tools of the struggle between groups or classes, used to maintain inequality and the dominance of the ruling class.