If Policy Makers Think the Natural Rate of Unemployment Is

question 47

Multiple Choice

If policy makers think the natural rate of unemployment is lower than it really is,then their policies designed to move the economy to the estimated natural rate,if continued over the long run,will:

• A)cause continuing inflation.
• B)shift the long-run aggregate supply curve to the right.
• C)shift the supply curve of labor to the right.
• D)lead to a lower price level.
• E)keep the economy below its potential GDP level.

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Definitions:

African American Women

Women of African descent living in the United States, who have a unique cultural, social, and historical position shaped by factors such as race, gender, and class.

Othermothers

Non-biological maternal figures who provide care, guidance, and support to children within a community, extending the concept of motherhood beyond biological ties.

Quakers

A religious group formally known as the Religious Society of Friends, known for their commitment to peace, simplicity, integrity, and equality.

Shakers

A religious sect formally known as the United Society of Believers in Christ's Second Appearing, known for their communal living, celibacy, and simple lifestyle.