The natural rate of unemployment

Assignment Help Business Economics

Reference no: EM131387195

If policey makers tihink that the natural rate of unemployment is lower than it really is, then their policeies designed to move the economy to the estimated natural rate, if continued over the long run, will:

A) cause continuing inlflation

B) shift the long run aggregate supply curve to the right

C) shift the supply curve of labor to the right

D) lead to a lower price level

E) keep the economy below its potential GDP level

Reference no: EM131387195

Questions Cloud

Monopolist sells product in two different markets : A monopolist sells a product in two different markets. Demand in the first market is Q = 100 − P. Demand in the second market is Q = 100 − 2P. The firm’s cost function is given by C(Q) = 10Q. Suppose the firm can charge different prices in the two ma..

Unemployment benifits funded by higher taxes on earning : Higher unemployment benifits funded by higher taxes on earning would:

Structures and materials : You are to write up a lab report based upon one of the investigations you will complete during the practical element of this module. Experimental laboratory investigations will be carried out in small student groups – information about group allocati..

Cause an outward shift of production possibility curve : Which of the following is likely to cause an outward shift of a production possibility curve?

The natural rate of unemployment : If policey makers tihink that the natural rate of unemployment is lower than it really is, then their policeies designed to move the economy to the estimated natural rate, if continued over the long run, will:

Decrease in aggregate demand will lead : In the long run, a decrease in aggregate demand will lead to an :

Focuses on influencing the federal funds rate : Explain how a monetary policy that focuses on influencing the federal funds rate can influence other market determined interest rates. Does the existence of federal deposit insurance render the Federal Reserve’s role as a lender of last resort unnece..

Are they worth that kind of money : Talk about the pay for the Disney CEO (earned $34.3 million in fiscal 2013) and Tiger Woods (earned an estimated $78.1 million in 2013). Are they worth that kind of money?

Reluctant to engage in major organizational restructuring : Large Japanese firms are typically reluctant to engage in major organizational restructuring, and avoid radical innovation. Why is this? Is this reluctance to change helpful or harmful to their interests?

User Account

All Pages