When the Natural Unemployment Rate Increases

question 101

Multiple Choice

When the natural unemployment rate increases,

• A)there are no shifts of either the long-run Phillips curve or the short-run Phillips curve.
• B)both the long-run Phillips curve and the short-run Phillips curve shift leftward.
• C)the long-run Phillips curve shifts rightward,and the short-run Phillips curve shifts leftward.
• D)both the long-run Phillips curve and the short-run Phillips curve shift rightward.
• E)the long-run Phillips curve shifts leftward,and the short-run Phillips curve shifts rightward.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to external parties or creditors.

Cash Dividend

A cash dividend is a payment made by a company out of its earnings to shareholders in the form of cash.

Financial Position

A snapshot of the resources a company controls and its obligations at any given time, indicating its economic standing.

Stock Dividend Distributable

A declaration by a company’s board of directors to issue a dividend in the form of additional shares rather than cash.