In the long run, monetary growth
A) can change the unemployment rate only at the cost of increased inflation.
B) can change the unemployment rate while holding the inflation rate constant.
C) can promote economic growth.
D) cannot affect the factors that determine the economy's unemployment rate.

Question

Quizplus · Accepted Answer

In the long run, monetary growth does not affect the natural rate of unemployment, which is determined by factors such as labor market policies and technology.

In the Long Run, Monetary Growth