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Suppose Economists Were Able to Measure Frictional Unemployment as 3

Question 30

Multiple Choice

Suppose economists were able to measure frictional unemployment as 3 percent, cyclical unemployment as 2 percent, and structural unemployment as 4 percent. Then we would know that


A) Y is below Y* and there is downward pressure on wages.
B) Y is above 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 below Y* and there is upward pressure on wages.

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