The Unemployment Rate Can Remain Below the Natural Rate,but Only

question 150

Multiple Choice

The unemployment rate can remain below the natural rate,but only _____.

• A)in the long run
• B)with continuous deflation
• C)with a continuously increasing inflation rate
• D)with a series of adverse supply shocks
• E)if the money supply is constant

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Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, enabling trade benefits.

Free Trade

International commerce that operates naturally without the interference of tariffs, quotas, or restrictions.

Domestic Consumption

Domestic Consumption is the total amount of goods and services consumed within a country, excluding those used for exports.

Domestic Price

The price of goods or services within a country's domestic market, as opposed to international or export prices.