If the NAIRU is 8% and the actual unemployment rate is 5%,
A) there is no pressure on the AS curve to shift.
B) there is a recessionary gap.
C) demand forces put upward pressure on wages.
D) the AS curve will shift downward.
E) it will get stuck there permanently.
Correct Answer:
Verified
Q12: Suppose the NAIRU for Canada is 6%,the
Q13: Suppose the NAIRU for Canada is 6.5%,the
Q14: What does the term NAIRU stand for?
A)non-accelerating
Q15: Which of the following would be expected
Q16: If the unemployment rate is less than
Q18: Suppose the NAIRU for Canada is 6.5%,and
Q19: Actual inflation would be 2% when expected
Q20: Suppose economists were able to measure frictional
Q21: A constant inflation rate can be illustrated
Q22: A leftward shift of the AD curve
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