The "Acceleration" Property States by Definition That

question 17

Multiple Choice

The "acceleration" 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 any accelerated inflation caused by outside price shocks.
• D) any attempt to keep actual GDP above its potential must produce accelerating rates of inflation.
• E) unemployment can be maintained at the natural rate even given accelerating inflation.

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Definitions:

Deposit Account

A deposit account is a bank account that allows the holder to deposit and withdraw money, often earning interest, including savings accounts, checking accounts, and other transaction accounts.

Liabilities

Financial obligations or debts that a company or individual owes to others, which must be paid back in the future.

Government Securities

Financial instruments issued by the government to borrow money from the public.

Excess Reserves

The amounts of cash banks hold in reserve over and above the regulatory requirements, which can influence their capacity for lending and overall liquidity in the economy.