Which of the Following Statements Is False

question 164

Multiple Choice

Which of the following statements is false?

• A) If the economy is self-regulating,wages are flexible.
• B) The frictional unemployment rate equals the natural unemployment rate minus the structural unemployment rate.
• C) If the economy is producing Natural Real GDP,it is operating at the natural unemployment rate.
• D) The economy is operating at full employment if it is producing more than Natural Real GDP.

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Definitions:

Operating Cost

Expenses associated with the day-to-day functions of a business, including rent, equipment, inventory costs, marketing, payroll, insurance, and funds allocated for research and development.

Different Prices

A scenario in which a product or service is offered at varied prices to different customers or in different markets or circumstances.

Service Component

Part of a product offering that involves the provision of labor or expertise, rather than a physical product, to satisfy customer needs.

Operating Expense

Expenses incurred in the normal operation of a business, including costs like rent, utilities, payroll, and materials, but excluding cost of goods sold.