If Policy Makers Think the Natural Rate of Unemployment Is

question 67

Multiple Choice

If policy makers think the natural rate of unemployment is higher 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 left
• C)shift the supply curve of labor to the left
• D)reduce unemployment more than they had intended
• E)keep the economy below its potential GDP level

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Definitions:

Partnership Debts

Financial obligations or liabilities that are the shared responsibility of all partners within a partnership.

Duty To Serve

An obligation, often seen in utilities and public services, requiring companies to offer services to all customers within a given area, despite the possible financial loss involved.

Limited Liability Partnerships

Limited Liability Partnerships (LLPs) are partnerships in which some or all partners have limited liabilities, meaning they are not personally responsible for the partnership's debts.

Contractual Obligation

An agreement that legally binds two or more parties to specific actions or non-actions.