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:

Price

The expenditure involved in buying a good or service.

Demand Curve

A chart that depicts the link between a product's price and the amount of the product that buyers are prepared and capable of buying at various price points.

Monopolistically Competitive Industry

In a monopolistically competitive industry, numerous firms compete against each other with differentiated products, allowing for some degree of market power and price setting.

Downward Sloping

Describes a line or curve on a graph that shows a decrease in one variable as another variable increases, commonly seen in demand curves.