A policy that lowered the natural rate of unemployment would shift

Question

Quizplus · Accepted Answer

A policy that lowers the natural rate of unemployment would affect both the short-run and the long-run Phillips curves by shifting them to the left. This is because a lower natural rate of unemployment typically indicates an improvement in the labor market's efficiency or changes in labor market policies, affecting both the short-term and long-term trade-offs between unemployment and inflation.

A Policy That Lowered the Natural Rate of Unemployment Would