In Late 2006, the Unemployment Rate Increased from 4

Multiple Choice

In late 2006, the unemployment rate increased from 4.4 percent to 4.5%. It was reported that new jo were created in several sectors including accounting, engineering services, computer design and ed These increases offset job losses in the construction and automobile industries. At the
Based on the story, the labor market reflects

A) efficiency wages.
B) cyclical unemployment.
C) a negative output gap.
D) a positive output gap.