There will be ____ pressure on wages and prices when the unemployment rate ____ the non-accelerating-inflation rate of unemployment (NAIRU).

Question

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When the unemployment rate falls below the non-accelerating-inflation rate of unemployment (NAIRU), it indicates that the economy is potentially overheating, leading to increased demand for labor. This situation puts upward pressure on wages as employers compete for a smaller pool of unemployed workers, which can then lead to upward pressure on prices as higher labor costs are passed on to consumers.

There Will Be ____ Pressure on Wages and Prices When