In the long run, the inflation rate
A)cannot be negative.
B)is equal to the natural inflation rate.
C)can take on any value.
D)is zero.
E)must be equal to the natural unemployment rate.

Question

Quizplus · Accepted Answer

In the long run, the inflation rate can take on any value depending on various factors such as monetary policy, economic conditions, and external shocks. There is no fixed or natural inflation rate that it must adhere to.

In the Long Run, the Inflation Rate