Multiple Choice
In the short run,one reason why we do not define "full employment" as 0 percent unemployment is because
A) Of the direct relationship between unemployment and inflation.
B) The closer the economy gets to capacity output,the greater the risk of inflation.
C) Of the vertical aggregate supply curve.
D) 0 percent unemployment is consistent with price stability.
Correct Answer:
Verified
Correct Answer:
Verified
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