Exhibit 6-2 Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 2?

Suppose policy makers underestimate the natural rate of unemployment. In a situation like this, policy makers might implement a policy that

A) attempts to maintain output below the natural level of output. B) results in deflation. C) both A and B D) results in steadily rising inflation.

By downsizing, a firm attempts to operate on a smaller scale of operation

Indicate whether the statement is true or false