When the Economy Is Operating at an Output Rate Below

question 54

Multiple Choice

When the economy is operating at an output rate below its full-employment level, the

• A) actual level of unemployment will exceed the natural rate of unemployment.
• B) current rate of output will tend to persist into the future.
• C) strong demand for resources will cause resource prices to rise.
• D) actual unemployment rate will be less than the natural rate of unemployment.

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Definitions:

Travel Expense

Costs associated with traveling for the purpose of conducting business-related activities.

Purchase Price

The amount of money paid to acquire a product or service.

Cash

Cash in the form of coins or paper money, ready for trading or banking activities.

Beginning Balance

The amount of money or value of an account at the start of a new accounting period.