Suppose the NAIRU for Canada is 6.5%,the actual unemployment rate is 5% and productivity is constant.We can conclude that
A) there is a recessionary gap.
B) the NAIRU will re-adjust to 5%.
C) the AD curve will automatically shift up.
D) the excess demand for labour will put upward pressure on wages.
E) the excess supply of labour will put downward pressure on wages.
Correct Answer:
Verified
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A)non-accelerating
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