Under Which of the Following Conditions Will the Actual Rate

question 48

Multiple Choice

Under which of the following conditions will the actual rate of unemployment tend to rise above the natural rate of unemployment?

• A) Prices are stable and have been for the last four years.
• B) Inflation is 3 percent and was widely anticipated more than a year ago.
• C) Expansionary monetary policies lead to an unexpected increase in inflation from 3 percent to 7 percent.
• D) Restrictive monetary policies lead to an unexpected reduction in inflation from 6 percent to 2 percent.

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Definitions:

Work Efficiently

The practice of performing tasks in a productive manner with minimal waste of time and resources.

Minimize Hours

The act of reducing the amount of time spent on tasks or activities to increase efficiency or cost-effectiveness.

Business Invitee

A person who enters commercial premises for the purpose directly or indirectly related to the business of the premises owner, under the owner's invitation.

Business Guest

A visitor to a company or organization for professional reasons, often invited for meetings, partnerships, or conferences.