Q9 · Practice questionSimple familiar1 mark
QUESTION 9
The non-accelerating inflation rate of unemployment is best described as the unemployment rate
(A)
at which unemployment is zero.
(B)
that guarantees an inflation rate of zero.
(C)
at which every worker has a full-time job.
(D)
consistent with inflation not accelerating, other influences unchanged.
WORKED SOLUTION
1 markAnswer D
Answer
D
Working
NAIRU refers to the unemployment rate consistent with stable inflation pressure from the labour market. It is estimated, can change and is not a zero-unemployment target.
Marking criteria
- Select D. [1 mark]
Practice question aligned to the current QCAA syllabus; review the worked solution and marking criteria.
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