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When Output Increases by 1%, the Unemployment Rate ________ in the Short

Question 22

Multiple Choice

When output increases by 1%, the unemployment rate ________ in the short run because as output increases, the size of the labor force increases.


A) tends to rise by 1%
B) tends to fall by 1%
C) does not tend to fall by 1%
D) tends to rise by less than 1%

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