If the NAIRU is 6 percent and the actual unemploymentrate is 8 percent,A. it will get stuck there permanently.B. the AS curve will shift upward.C. there is an inflationary gap.D. there is no pressure on the AS curve to shift.E. demand forces put downward pressure on wages.

If the real unemployment rate is 8% but the NAIRU is 6%, demand factors will drive wages lower. This…

Answered: If the NAIRU is 6 percent and the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the NAIRU is 6 percent and the actual unemployment rate is 8 percent, A. it will get stuck there permanently. B. the AS curve will shift upward. C. there is an inflationary gap. D. there is no pressure on the AS curve to shift. E. demand forces put downward pressure on wages.