Author Question: When the actual unemployment rate is greater than the NAIRU, the inflation rate A) remains ... (Read 31 times)

EY67 · **on:** Jun 30, 2018

When the actual unemployment rate is greater than the NAIRU, the inflation rate

A) remains unchanged. B) tends to increase.
C) falls to zero. D) tends to decrease.

Question 2

Which of the following is TRUE about how trade deficits and government budget deficits are related?

A) The government budget deficit leads to higher interest rates that will lead to a trade deficit.
B) The government budget deficit leads to lower interest rates that will lead to a lower trade deficit.
C) The trade deficit leads to a reduction in investment that leads to a government budget deficit.
D) The trade deficit leads to a decline in imports relative to exports that leads to a government budget deficit.