If Unemployment Is Below Its Natural Rate,what Happens to Move

question 26

Multiple Choice

If unemployment is below its natural rate,what happens to move the economy to long-run equilibrium?

• A)Inflation expectations rise which shifts the short-run Phillips curve to the right.
• B)Inflation expectations rise which shifts the short-run Phillips curve to the left.
• C)Inflation expectations fall which shifts the short-run Phillips curve to the right.
• D)Inflation expectations fall which shifts the short-run Phillips curve to the left.

---

Definitions:

Factory Utilities

Expenses related to utilities such as electricity, gas, and water, used in the operation of a manufacturing facility.

Indirect Labor

The wages paid to employees who support the production process but are not directly involved in the creation of the product or service.

Resource Consumption

The usage of resources by a company or process, including materials, energy, and labor, critical for understanding cost behaviors and environmental impact.

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the activities and resources required to produce or deliver them.