In Periods When GDP Grows Very Rapidly for a Long

question 67

Multiple Choice

In periods when GDP grows very rapidly for a long period, the actual unemployment rate will be ________ than the natural rate of unemployment.

• A) lower
• B) higher
• C) the same
• D) more variable

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Definitions:

Cost-Push Inflation

A sustained rise in the price level caused by a leftward shift of the aggregate supply curve.

Major Wars

Large-scale, high-intensity conflicts between countries or significant groups, often with substantial impacts on societies, economies, and environments.

Deflation

A decrease in the general price level of goods and services in an economy over a period, often indicating reduced consumer demand or excessive supply.

Aggregate Demand Curve

The aggregate demand curve represents the total demand for goods and services in an economy at different price levels, generally showing an inverse relationship between price and output demanded.