Suppose a Policy Affects the Natural Rate of Unemployment

question 68

Multiple Choice

Suppose a policy affects the natural rate of unemployment. Which of the following does such a policy change?

• A)neither the long-run Phillips curve nor the long-run aggregate supply curve
• B)both the long-run Phillips curve and the long-run aggregate supply curve
• C)the long-run Phillips curve, but not the long-run aggregate supply curve
• D)the long-run aggregate supply curve, but not the long-run Phillips curve

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Definitions:

Product-Based Definition

Characterization of a product strictly in terms of its physical attributes and features.

Poka-Yoke

Literally translated, “foolproof”; it has come to mean a device or technique that ensures the production of a good unit every time.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making small, incremental changes over time.

Profitability

A measure of the efficiency and effectiveness of a company in generating profits from its operations, indicative of its financial health over time.