An Increase in Frictional Unemployment Will

question 56

Multiple Choice

An increase in frictional unemployment will

• A)shift the long-run Phillips curve to the right.
• B)increase the natural rate of unemployment.
• C)shift the short-run Phillips curve to the right.
• D)All of the above are correct.
• E)None of the above is correct.

---

Definitions:

Volume-Related Measures

Metrics that determine the effects of production or sales volume changes on costs and revenues.

Overhead Costs

Expenses not directly tied to the production of goods or services, like rent, utilities, and administrative costs.

Allocation Method

A procedure used in accounting or budgeting to distribute costs or revenues among various accounts or departments based on predetermined criteria.

ABC Perspective

An ABC Perspective generally refers to viewing activities based on Activity-Based Costing, focusing on managing activities as the route to optimizing costs and improving business operations.