If the Current Unemployment Rate Is 5%, Under Which of the Following

question 27

Multiple Choice

If the current unemployment rate is 5%, under which of the following circumstances would you expect the Bank of Canada to use contractionary monetary policy?

• A)if seasonal unemployment is 4 percent and structural unemployment is 3 percent
• B)if frictional unemployment is 3 percent and structural unemployment is 4 percent
• C)if structural unemployment is 4 percent and seasonal unemployment is 2 percent
• D)if cyclical unemployment is 0 percent and frictional unemployment 1.5 percent
• E)if frictional unemployment is 2 percent and structural is 3 percent

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Definitions:

Office Supplies

Various everyday items used in offices for tasks such as writing, organization, and communication, including pens, paper, and staplers.

Petty Cash

A small amount of cash on hand used for covering minor expenses.

Cash Over and Short

An account that records the discrepancies between the expected cash count and the actual amount of cash received or paid out, indicating errors or theft.

Outstanding Checks

Checks that have been written and recorded in the checking account but have not yet been cashed or cleared by the bank.