If Policy Makers Estimate the Natural Rate of Unemployment Incorrectly,_____

question 133

Multiple Choice

If policy makers estimate the natural rate of unemployment incorrectly,_____.

• A)their policies will cause deflation in the long run
• B)their policies will cause even more unemployment in the long run
• C)the economy will stay below its potential GDP in the long run
• D)the economy will tend toward the level of unemployment the policy makers believe is correct
• E)policies that appear to be successful in the short run will lead to further economic problems

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Definitions:

Sale of Goods Act

A set of legal regulations governing the sale of goods, ensuring rights, and obligations between buyer and seller are clearly defined.

Breached a Warranty

The act of violating a promise or guarantee made about the condition or functionality of a product or service.

Sale of Goods Act

Legislation governing the sale of goods, providing rights to consumers and obligations to sellers.

Entitled

Given a right or claim to receiving or doing something.