Suppose that the natural level of unemployment in Ausland is 4% and that the current unemployment rate is 3.5%. Which statement would be most consistent with the information above? Select one: a. The aggregate demand curve at the current level of unemployment would lie below the aggregate demand curve when unemployment is at the natural rate. Consequently, workers have a strong bargaining position b. The aggregate demand curve at the current level of unemployment would lie above the aggregate demand curve when unemployment is at the natural rate. Consequently, there is downward pressure on inflation.
Suppose that the natural level of unemployment in Ausland is 4% and that the current unemployment rate is 3.5%. Which statement would be most consistent with the information above? Select one: a. The aggregate demand curve at the current level of unemployment would lie below the aggregate demand curve when unemployment is at the natural rate. Consequently, workers have a strong bargaining position b. The aggregate demand curve at the current level of unemployment would lie above the aggregate demand curve when unemployment is at the natural rate. Consequently, there is downward pressure on inflation.
Chapter10: Aggregate Supply
Section: Chapter Questions
Problem 1.1P
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Suppose that the natural level of unemployment in Ausland is 4% and that the current unemployment rate is 3.5%.
Which statement would be most consistent with the information above?
Select one:
a.
The aggregate demand curve at the current level of unemployment would lie below the aggregate demand curve when unemployment is at the natural rate. Consequently, workers have a strong bargaining position
b.
The aggregate demand curve at the current level of unemployment would lie above the aggregate demand curve when unemployment is at the natural rate. Consequently, there is downward pressure on inflation.
c.
The aggregate demand curve at the current level of unemployment would lie above the aggregate demand curve when unemployment is at the natural rate. Consequently, there would be downward pressure on the policy rate
d.
The aggregate demand curve at the current level of unemployment would lie above the aggregate demand curve when unemployment is at the natural rate. Consequently, there would be upward pressure on inflation
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