Multiple Choice
Suppose the natural rate of unemployment is 4 percent. If the actual unemployment is 5 percent, then the cyclical unemployment rate is
A) -9 percent.
B) -1 percent.
C) 1 percent.
D) 9 percent.
Correct Answer:
Verified
Correct Answer:
Verified
Q183: The natural rate of unemployment<br>A) prevails in
Q184: When "stagflation" occurs<br>A) the economy experiences higher
Q185: New Keynesians argue that<br>A) appropriate activist policies
Q186: The downward slope of the Phillips curve
Q187: When people face bounded rationality, they are
Q189: A central feature of behavioral economics is<br>A)
Q190: Which of the following is NOT a
Q191: Which statement is TRUE when rational expectations
Q192: The Phillips curve shows<br>A) the relationship between
Q193: Cyclical unemployment is negative when<br>A) the inflation