If the Natural Rate of Unemployment Declines ________

question 34

Multiple Choice

If the natural rate of unemployment declines ________.

• A)labor is more heavily utilized
• B)potential output increases
• C)the long run aggregate supply curve shifts to the right
• D)all of the above
• E)none of the above

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Definitions:

Creative Destruction

A concept in economics which suggests that old ways of doing business are destroyed and replaced by new, more efficient methods.

Society's Scarce Resources

Resources that are limited in availability and are important for the production of goods and services, leading to allocation decisions.

New Products

Items that represent significant innovations or improvements over existing products, introduced into the market.

Creative Destruction

A concept in economics that suggests economic innovation and progress often involves the dismantling of existing structures or industries to make way for new ones.