Multiple Choice
Which of the following conditions might cause the unemployment rate to be less than the natural rate of unemployment?
A) Demand for products starts to decrease,so firms keep their factories open for additional hours of production to make up the difference.
B) Demand for products is so high that firms keep their factories open for additional hours of production and pay their workers overtime.
C) Demand for products is so high that firms raise their prices to take advantage of extra profits.
D) The economy enters a recession,so firms start to produce more to help boost the economy.
E) The government decreases unemployment benefits.
Correct Answer:

Verified
Correct Answer:
Verified
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