If the Unemployment Rate Is Less Than the Natural Unemployment

question 285

Multiple Choice

If the unemployment rate is less than the natural unemployment rate,then

• A)there is no frictional unemployment.
• B)cyclical unemployment is greater than zero.
• C)real GDP is less than potential GDP.
• D)real GDP is greater than potential GDP.
• E)frictional unemployment is negative.

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Definitions:

Machine Tool Factory

An industrial facility where machine tools are manufactured, which are devices used for shaping or machining metal or other rigid materials.

Reification

Treating an abstraction as if it were a concrete, real event or physical entity.

Ideology

A set of beliefs, values, and opinions that shapes the way an individual or a group perceives the world and acts within it.

Wealth Distribution

The manner in which wealth is allocated among individuals or groups within a society.