-The data in the above table show that when the price level is 120,
A) the unemployment rate is below its natural rate.
B) money wages rates will rise in the future.
C) the unemployment rate is above its natural rate.
D) the long- run aggregate supply curve will shift leftward in the future.

Question

-The data in the above table show that when the price level is 120,
A) the unemployment rate is below its natural rate. 
B) money wages rates will rise in the future. 
C) the unemployment rate is above its natural rate. 
D) the long- run aggregate supply curve will shift leftward in the future.

Quizplus · Accepted Answer

The unemployment rate is above its natural rate when the price level is below the equilibrium price level.

-The Data in the Above Table Show That When the Price