An Increase in Frictional Unemployment Will

question 56

Multiple Choice

An increase in frictional unemployment will

• A)shift the long-run Phillips curve to the right.
• B)increase the natural rate of unemployment.
• C)shift the short-run Phillips curve to the right.
• D)All of the above are correct.
• E)None of the above is correct.

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Definitions:

Factory Overhead

Indirect manufacturing costs not directly tied to specific units produced, including maintenance, utilities, and salaries of supervisory staff.

Administrative Expenses

Costs related to the general administration of a business, such as salaries of senior executives, accounting, and human resources, that are not directly tied to any specific business activity.

Period Cost

Expenses recognized in the accounting period when they are incurred, not directly linked to production activity.

Selling

The process of persuading a customer to buy a product or service, often involving identifying customer needs, presenting solutions, and closing the sale.