Which of the Following Is True

question 58

Multiple Choice

Which of the following is true?

• A)Frictional unemployment implies a lack of available jobs.
• B)During a recession,cyclical unemployment will be low.
• C)When an economy is at full employment,actual unemployment will be less than the natural rate of unemployment.
• D)When actual GDP equals potential GDP,the actual unemployment rate will equal the economy's natural rate of unemployment.

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Definitions:

Perceptual Distortion

An error in how we interpret or understand sensory information, causing us to misjudge part of our environment or social interactions.

Primacy Effect

A cognitive bias that results in a person recalling information presented at the beginning of a list better than information in the middle or end.

Selective Attention

The cognitive process of focusing on a particular object, event, or process while ignoring others, in a limited capacity of awareness.

Contrast Effect

A cognitive bias where the difference between two things is exaggerated because they are compared directly to each other.