If the Unemployment Rate Is Less Than the NAIRU

question 27

Multiple Choice

If the unemployment rate is less than the NAIRU,

• A)there is no pressure on the AS curve to shift.
• B)there is a recessionary output gap.
• C)demand forces will exert upward pressure on wages.
• D)the AS curve will shift downward.
• E)there will be downward pressure on wages.

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