The Unemployment Rate Can Remain Below the Natural Rate,but Only

question 150

Multiple Choice

The unemployment rate can remain below the natural rate,but only _____.

• A)in the long run
• B)with continuous deflation
• C)with a continuously increasing inflation rate
• D)with a series of adverse supply shocks
• E)if the money supply is constant

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Definitions:

Technological Advances

Improvements in technology that enhance productivity, efficiency, and quality in the production of goods and services.

Conserve

To use or manage resources wisely to prevent wastage.

Economists

Professionals who study how societies use available resources to produce valuable commodities and distribute them among different people.

Short Supply

indicates a situation where the availability of a product or resource is less than the demand for it, often leading to higher prices.