The Natural Level of Output Is the Level of Output

question 70

Multiple Choice

The natural level of output is the level of output that occurs when

• A)the goods market and financial markets are in equilibrium.
• B)the economy is operating at the unemployment rate consistent with both the wage-setting and price-setting equations.
• C)the markup (m)is zero.
• D)the unemployment rate is zero.
• E) there are no discouraged workers in the economy.

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