The lack of a long-run tradeoff between the unemployment rate and the inflation rate means that
A) only monetary policy is effective to lower the natural unemployment rate.
B) the natural unemployment rate cannot change.
C) only fiscal policy is effective to lower the natural unemployment rate.
D) an increase in the inflation rate would not bring a reduction in the natural unemployment rate.
E) only a decrease in the inflation rate would bring a reduction in the natural unemployment rate.
Correct Answer:
Verified
Q1: If the natural unemployment rate decreases, then
Q2: In the long run, the unemployment rate
A)is
Q4: In the long run, the inflation rate
A)cannot
Q5: In the short run, a decrease in
Q6: The natural unemployment rate
A)never changes.
B)always increases.
C)increases when
Q7: The short-run Phillips curve shows the relationship
Q8: If the Fed raises the inflation rate
Q9: --------------------is fixed when moving along the aggregate
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