The correct answer is: [D]: "all of the above are correct."
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"Cyclical unemployment:
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- [A]: "has a different explanation than does the natural rate of unemployment."
- [B]: "refers to the year-to-year fluctuation in unemployment around an economy's natural rate of unemployment."
- [C]: "is closely associated with short-run ups and downs of economic activity."
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→ So; the correct answer is:
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→ Answer choice: [D]: "all of the above are correct."
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Answer:
a. neither the nominal nor the real interest rate rise.
Explanation:
Under Fisher's theory, if the nominal interest rate increases at a higher rate than the inflation rate, then the real interest rate rises. If the inflation rate increases more than the nominal interest rate, then the real interest rate decreases.
Generally, an increase in the money supply decreases the nominal interest rate and increases the inflation rate. That results in both lower nominal interest rates and lower real interest rates.
Explanation:
for the time in history,there are 5 Generations working side-by-side the transitional generation .
