If Policy Makers Think the Natural Rate of Unemployment Is

question 150

Multiple Choice

If policy makers think the natural rate of unemployment is lower than it really is,then their policies designed to move the economy to the estimated natural rate,if continued over the long run,will

• A)cause continuing inflation
• B)shift the long-run aggregate supply curve to the right
• C)shift the supply curve of labor to the right
• D)reduce unemployment more than they had intended
• E)keep the economy below its potential GDP level

---

Definitions:

Standard Deviation

A measure of the dispersion or variability of a set of numeric values, showing how much variation there is from the mean.

Largest

Describing the greatest in size, extent, or capacity.

Set 1

The initial group or collection in a series, which can be distinguished by specific characteristics or parameters.

Histogram

A histogram is a graphical representation of the distribution of numerical data, using bars of different heights to show the frequency of data in consecutive, non-overlapping intervals.