If Policy Makers Estimate the Natural Rate of Unemployment Incorrectly

question 159

Multiple Choice

If policy makers estimate the natural rate of unemployment incorrectly,

• A)their policies will cause deflation in the long run
• B)their policies will cause even more unemployment in the long run
• C)the economy will stay below its potential GDP level in the long run
• D)the economy will tend toward that level of unemployment the policy makers believe is correct
• E)policies that appear to be successful in the short run will lead to further economic problems

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Definitions:

Developmental

Pertaining to the process of growth or development, especially the psychological and physiological growth and changes that occur in human beings throughout their lifespan.

Genetics

The branch of biology dealing with heredity and variation in organisms, explaining how traits are passed from parents to offspring.

Stereotypically Feminine

Traits or behaviors traditionally associated with women in a given culture, often including empathy, nurturing, and sensitivity.

Sex Differences

The biologically based distinctions between males and females, often related to reproductive functions but also encompassing other physiological differences.