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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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