Use the Following to Answer Questions

question 207

Multiple Choice

Use the following to answer questions :
Figure: Short-Run Phillips Curve
-(Figure: Short-Run Phillips Curve) Look at the figure Short-Run Phillips Curve. The NAIRU is:

• A)3%.
• B)5%.
• C)7%.
• D)8%.

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Definitions:

Normative Statement

An opinion-based statement that reflects values or judgments and cannot be tested or disproven by observation.

Positive

In the context of economic analysis, it often refers to a fact-based approach that attempts to describe how economic systems actually work without making judgments about their desirability.

Circular-Flow Diagram

A model that illustrates the movement of goods, services, and money between households and businesses in an economy.

Factor Market

A marketplace where services of the factors of production (labor, land, capital) are bought and sold.