If the Economy Is Operating at an Unemployment Rate Above

question 200

Multiple Choice

If the economy is operating at an unemployment rate above the full employment rate,

• A) actual output is above potential output
• B) actual output is below potential output
• C) frictional unemployment has been eliminated
• D) structural unemployment has been eliminated
• E) actual output equals potential output

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Definitions:

Price-Level-Adjusted Currency

Currency whose value is adjusted according to changes in a price index, to account for inflation or deflation.

Specific Currency

A particular currency chosen for financial transactions or accounting purposes.

Foreign Exchange

The trading and conversion of different national currencies, as well as the global marketplace where such transactions occur.

Fair Value Adjustment Account

An accounting ledger that reflects adjustments made to ensure assets and liabilities are reported at their fair market value.