If the Unemployment Rate Is Above Its Natural Rate,then ________

question 38

Multiple Choice

If the unemployment rate is above its natural rate,then ________.

• A)output is below its potential level
• B)there is excess slack in the labor market which will dive down wages
• C)inflation will decline until equilibrium output reaches its potential level
• D)all of the above
• E)none of the above

---

Definitions:

Accept

To receive or agree to take something offered or to agree with or consent to an idea or proposal.

New

Pertaining to something recently introduced or created.

Past

The time before the present, including all events, periods, and experiences that have occurred.

Quiet

The absence of loud sound; a state or condition of little or no noise.