If the NAIRU Was 4

question 35

Multiple Choice

If the NAIRU was 4.8% in 2002 and the actual unemployment rate was 5.8%,what percentage of the labor force could have been put to work without exerting upward pressure on inflation?

• A) 1%.
• B) 10.6%.
• C) 1.2%.
• D) 5.3%.

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Definitions:

Standard Deviations

A measure of the amount of variation or dispersion of a set of values.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many types of data where most values cluster around the mean.

Inferential Statistics

The branch of statistics that allows one to make predictions or inferences about a population based on a sample of data taken from that population.

Normal Distribution

A statistical distribution where data is symmetrically distributed around the mean, forming a bell-shaped curve.