The "natural rate" property states by definition that
A) the unemployment rate must exceed the natural rate if actual GDP falls short of its potential.
B) the unemployment rate must fall short of the natural rate if actual GDP exceeds its potential.
C) the unemployment rate is independent of outside price shocks because it is set by the natural operation of the certainty equivalent economy.
D) any attempt to keep actual GDP above its potential produces accelerating inflation.
E) unemployment can be maintained at the natural rate for any rate of inflation.

Question

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The Answer of The "natural rate" property states by definition that
A) the unemployment rate must exceed the natural rate if actual GDP falls short of its potential.
B) the unemployment rate must fall short of the natural rate if actual GDP exceeds its potential.
C) the unemployment rate is independent of outside price shocks because it is set by the natural operation of the certainty equivalent economy.
D) any attempt to keep actual GDP above its potential produces accelerating inflation.
E) unemployment can be maintained at the natural rate for any rate of inflation.

The "Natural Rate" Property States by Definition That