When the Actual Unemployment Rate Is Greater Than the NAIRU

question 67

Multiple Choice

When the actual unemployment rate is greater than the NAIRU, the inflation rate

• A) tends to increase.
• B) tends to decrease.
• C) remains unchanged.
• D) falls to zero.

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Definitions:

Physiological Deficiencies

Shortcomings or inadequacies in the physical body, often referring to the lack of essential nutrients or biological functions.

Psychological Deficiencies

Refers to the lack of cognitive or emotional capabilities that might impact an individual's mental health and wellbeing.

ERG Theory

Identifies existence, relatedness, and growth needs.

Need Categories

The classification of human needs into groups based on characteristics, such as physiological, safety, belonging, esteem, and self-actualization needs.