The "Natural Rate" Property States by Definition That

question 28

Multiple Choice

The "natural rate" property states by definition that

• A) the unemployment rate must exceed the natural rate if actual GDP falls short of its potential.
• B) the unemployment rate must fall short of the natural rate if actual GDP exceeds its potential.
• C) the unemployment rate is independent of outside price shocks because it is set by the natural operation of the certainty equivalent economy.
• D) any attempt to keep actual GDP above its potential produces accelerating inflation.
• E) unemployment can be maintained at the natural rate for any rate of inflation.

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Definitions:

Labour Relations Boards

Governmental bodies responsible for overseeing and adjudicating labor disputes and enforcing labor laws.

Bargaining Agents

Individuals or entities appointed to negotiate on behalf of a group, typically in labor unions or collective bargaining situations.

Collective Agreements

Contracts between employers and a group of employees that outline the terms of employment, including wages, working conditions, and dispute resolution procedures.

Constructive Dismissal

Employer termination of a contract of employment by a substantial, unilateral change in the terms or conditions of employment.