If Policy Makers Estimate the Natural Rate of Unemployment Incorrectly,_____

question 133

Multiple Choice

If policy makers estimate the natural rate of unemployment incorrectly,_____.

• A)their policies will cause deflation in the long run
• B)their policies will cause even more unemployment in the long run
• C)the economy will stay below its potential GDP in the long run
• D)the economy will tend toward the level of unemployment the policy makers believe is correct
• E)policies that appear to be successful in the short run will lead to further economic problems

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Definitions:

Decisions

The process of making choices among various options based on the analysis and judgment of the situation.

Ethical Obligations

Moral duties or commitments that guide individuals or organizations in their actions and decisions.

Competency

The ability to do something successfully or efficiently, often referring to a specific skill or type of behavior.

Standardization

Standardization is the process of implementing and developing technical standards to ensure consistency, safety, and interoperability of products or methods.