-Based on the data in the table above, at the short-run equilibrium
A) the unemployment rate is less than the natural unemployment rate.
B) the unemployment rate is greater than the natural unemployment rate.
C) the money wage rate will rise in the long run.
D) the economy is at full employment.

Question

-Based on the data in the table above, at the short-run equilibrium
A) the unemployment rate is less than the natural unemployment rate. 
B) the unemployment rate is greater than the natural unemployment rate. 
C) the money wage rate will rise in the long run. 
D) the economy is at full employment.

Quizplus · Accepted Answer

In the short-run equilibrium, if the unemployment rate is greater than the natural unemployment rate, it indicates that the economy is not at full employment, leading to downward pressure on wages and prices.

-Based on the Data in the Table Above, at the Short-Run