The natural rate hypothesis states that when the inflation rate -------------------- , in the short run the unemployment rate-------------------- and in the long run the unemployment rate--------------------.
A) falls, decreases; returns to the natural unemployment rate
B) rises, decreases; returns to the natural unemployment rate
C) falls, decreases; decreases
D) rises, decreases; decreases
E) falls, increases; decreases
Correct Answer:
Verified
Q56: Comparing the aggregate supply curve and the
Q57: Along a short-run Phillips curve, the
A)short-run benefit
Q58: The long-run Phillips curve indicates that
A)potential GDP
Q59: A country reports that its inflation rate
Q60: The short-run Phillips curve presents a tradeoff
Q62: When people use all the relevant data
Q63: When the expected inflation rate--------------------, the short-run
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents