According to the Natural-Rate Hypothesis, Output Will Be at the Natural

question 16

Multiple Choice

According to the natural-rate hypothesis, output will be at the natural rate:

• A) if inflation exceeds expected inflation.
• B) if inflation falls below expected inflation.
• C) in the long run.
• D) if aggregate demand affects output in the long run.

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Definitions:

Bona Fide Occupational Qualification

A bona fide occupational qualification is a work requirement that is reasonably necessary to the normal operation of a particular business or job and is used as a defense against discrimination claims.

Discrimination

The unfair or biased treatment of various groups of people or objects, particularly based on race, age, or gender.

Punitive Damages

Monetary compensation awarded to an injured party that exceeds simple compensation and is intended to punish the wrongdoer.

Fair Labor Standards Act

A U.S. law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.