Suppose the measured unemployment rate is 3.9% and the natural rate of unemployment is 5.1%. In this situation, policymakers should
A) attempt to stimulate the economy.
B) attempt to slow the economy.
C) not intervene in the economy.
D) The actions of policymakers will depend on how much of the natural rate is frictional unemployment and how much is structural unemployment.
B
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The consumer price index (CPI):
A. measures the price of a fixed basket of goods and services relative to the price of that same basket in some base year. B. measures the price of a basket of goods and services that constantly changes as the composition of consumer spending changes. C. measures the amount of money that it takes to produce a fixed level of utility. D. is one of the many statistics in the National Income Accounts.
Marginal revenue product is measured in dollars per unit of output
a. True b. False