Suppose economists were able to measure frictional unemployment as 3%,cyclical unemployment as 2%,and structural unemployment as 4%.Then we would know that
A) Y is below Y* and there is downward pressure on wages.
B) Y is below Y* and there is upward pressure on wages.
C) Y is equal to Y* and there is no pressure on wages.
D) Y is above Y* and there is downward pressure on wages.
E) Y is above Y* and there is upward pressure on wages.
Correct Answer:
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