Exhibit 15-3 -Refer to the Graph in the Exhibit.What Is the Natural

question 18

Multiple Choice

Exhibit 15-3

-Refer to the graph in the exhibit.What is the natural rate of unemployment?
 

• A) 2 percent, because the natural rate of unemployment occurs at the intersection of the curves
• B) 4 percent, because the natural rate of unemployment is on the long-run curve
• C) 8 percent, because the natural rate of unemployment is the most the economy can attain with high inflation
• D) 10 percent, because the natural rate of unemployment is the most the economy can attain

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Definitions:

Late Selection

A cognitive process theory suggesting that all incoming information is processed at a basic level before selective filtering happens based on its importance.

Early Selection

A theory in psychology suggesting that information is selected to be attended to at an early stage during the processing of sensory information.

Retroactive Interference

A memory phenomenon where newly learned information interferes with and impedes the recall of previously learned information.

Proactive Interference

A situation where earlier memories hinder the ability to remember more recent memories.