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

question 24

Multiple Choice

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

• A)output is below its potential level
• B)there is excess tightness in the labor market
• C)the AS curve will shift to the right
• D)all of the above
• E)none of the above

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Definitions:

Standard Deviations

A measure of the dispersion or variability within a set of numerical data, indicating how much variation there is from the average (mean).

Sample Averages

The mean value calculated from a sample set of data, representing the central tendency or typical value of that sample.

Mode

Mode refers to the most frequently occurring value in a set of data.

Regression Toward the Mean

A statistical phenomenon wherein extreme scores on one occasion tend to be closer to the average on subsequent testing.