An Increase in Frictional Unemployment Will

question 2

Multiple Choice

An increase in frictional unemployment will

• A) shift the long-run Phillips curve to the right.
• B) increase the natural rate of unemployment.
• C) shift the short-run Phillips curve to the right.
• D) All of the above are correct.
• E) None of the above are correct.

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Definitions:

Federal Income Tax

A tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Payroll Tax

Taxes imposed on employers and employees, based on the wages and salaries paid to workers, used to fund social security and other government programs.

Great Recession

A profound global economic downturn that began in 2007 and lasted until 2009, marked by significant declines in economic activity worldwide.

Social Security Taxes

Social Security taxes are taxes collected from employees and employers to fund the Social Security program, providing retirement, disability, and survivors' benefits.