Use the Table Below to Answer the Following Questions

question 67

Multiple Choice

Use the table below to answer the following questions.
Table 28.4.2

-The economy's natural unemployment rate is 4 percent. Table 28.4.2 gives some points on the economy's short-run Phillips curve. When the unemployment rate is 4 percent,

• A)actual inflation is greater than expected inflation.
• B)actual inflation is less than expected inflation.
• C)and the inflation rate is 6 percent a year, the short-run and long-run Phillips curves intersect.
• D)and the expected inflation rate is 8 percent a year, the short-run Phillips curve shifts downward.
• E)aggregate demand increases.

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Definitions:

Lockout

An employment and negotiation strategy in which an employer prevents employees from working during a dispute, aiming to pressure the union into concessions.

Strike

A work stoppage initiated by employees as a form of protest, typically in an attempt to gain concessions from their employer regarding pay, conditions, or policies.

Union Membership

The status of being a member of a labor union, an organization that represents the collective interests of workers in negotiations with employers over wages, benefits, and working conditions.

Labor Force

The total number of people who are eligible and able to work, including those currently employed and those seeking employment.