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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Definitions:

Negotiation Stages

Phases through which a negotiation process progresses, typically including preparation, discussion, clarification, win-win negotiation, and agreement.

Mediator

A neutral third party who facilitates negotiations or conflict resolution between disputing parties, aiming for a mutually acceptable agreement.

Implementing Agreement

The process of putting a mutually agreed plan or contract into action.

Positive Effects

Beneficial outcomes or impacts resulting from a particular action or set of conditions.