If the Unemployment Rate Is Below Its Natural Rate,then ________

question 60

Multiple Choice

If the unemployment rate is below its natural rate,then ________.

• A)output is above its potential level
• B)there is excess tightness in the labor market
• C)wages and prices will rise more rapidly and the AS curve will shift to the left
• D)all of the above
• E)none of the above

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Definitions:

Utilitarian Decision

A decision-making process that maximizes overall happiness and minimizes overall pain, in line with utilitarian principles.

Rule Consequentialism

A theory in moral philosophy that suggests the rightness or wrongness of an action should be judged by the conformity to a rule whose general observance would lead to the best consequences.

Empirical Investigation

A method of research that involves the collection and analysis of data through observation and experiment to test hypotheses or theories.

Ethical Action

Ethical action implies behavior that is morally right and beneficial, guided by ethical principles and considerations.