If Policy Makers Think the Natural Rate of Unemployment Is

question 67

Multiple Choice

If policy makers think the natural rate of unemployment is higher than it really is,then their policies designed to move the economy to the estimated natural rate,if continued over the long run,will

• A)cause continuing inflation
• B)shift the long-run aggregate supply curve to the left
• C)shift the supply curve of labor to the left
• D)reduce unemployment more than they had intended
• E)keep the economy below its potential GDP level

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Definitions:

Infrastructure

The basic physical and organizational structures and facilities needed for the operation of a society or enterprise, such as buildings, roads, and power supplies.

Testing System

A framework or procedure established to assess qualities, abilities, or performance through examinations or experiments.

Job Evaluations

The systematic process of determining the relative worth of jobs to create a job structure for the organization.

Pay Range

A set span of salaries offered for a specific job, based on factors like experience, skill, and location.