The Lowest Possible Unemployment Rate That Will Not Cause the Inflation

question 158

Multiple Choice

The lowest possible unemployment rate that will not cause the inflation rate to increase is called:

• A) the nonaccelerating inflation rate of unemployment (NAIRU).
• B) the natural rate of unemployment.
• C) "full employment."
• D) All of these statements are true.

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Definitions:

Working Prototype

An initial version of a product that has enough features to allow for the testing and validation of core design concepts.

Invention

This is the creation of a new product, process, or idea that did not exist before.

Innovation

The introduction of something new, such as an idea, method, or device, that is designed to improve processes, products, or services.

Wide Imitation

The extensive replication of a product, service, or innovation by multiple competitors or industry participants, often signalling the success or desirability of the original.