When the Actual Unemployment Rate Is Greater Than the NAIRU

question 67

Multiple Choice

When the actual unemployment rate is greater than the NAIRU, the inflation rate

• A) tends to increase.
• B) tends to decrease.
• C) remains unchanged.
• D) falls to zero.

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Definitions:

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The first legislative assembly of elected representatives in North America, established by the Virginia Company in 1619, playing a significant role in American colonial government.

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The condition of a nation, country, or state which exercises self-government, and usually sovereignty, over the territory.

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